Number of unemployed in Germany decreased by 11,000

Tuesday, May 31 2016

German unemployment declined more than economists estimated, pushing the jobless rate to the lowest level since reunification. The number of people out of work fell by a seasonally adjusted 11,000 to 2.695 million in May, data from the Federal Labor Agency in Nuremberg showed on Tuesday. The median estimate in a Bloomberg survey was for a decline of 5,000. The jobless rate dropped to 6.1 percent. “The labor market continues to develop positively,” Frank-Juergen Weise, president of the labor agency, said in a statement, noting that unemployment declined even as a seasonal pickup in hiring comes to an end. “Employment has grown strongly and demand for labor has increased significantly.”

Separate report showed that the annual growth rate of the broad monetary aggregate M3 decreased to 4.6% in April 2016, from 5.0% in March, averaging 4.9% in the three months up to April. Analysts were predicting no change. The components of M3 showed the following developments. The annual growth rate of the narrower aggregate including currency in circulation and overnight deposits (M1) decreased to 9.7% in April, from 10.1% in March. The annual growth rate of short-term deposits other than overnight deposits (M2-M1) was more negative at -2.8% in April, from -2.4% in March. The annual growth rate of marketable instruments (M3-M2) was more negative at -1.6% in April, from -1.0% in March.

Euro is currently being traded few points below 1.1140 level. Pair is likely to find support around 1.11 handle and resistance above 1.1180 level. Later today, in the US session, CB Consumer Confidence figures are scheduled for a release.

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