Euro Gets Boost from Jobs Data, German Improvements

Euro is getting a boost today, thanks in large part to the latest jobs data, and to improvements in Germany’s economic data. Germany is seeing an increase exports, and there is a decline in the eurozone’s jobless rate.

Right now, the German economy is making strides. Exports rose in August, according to the Federal Statistics Office, and there was also a drop to 6.9 per cent unemployment for Germany. On top of that, the ZEW reports that investor confidence in Germany is at a three-year high.

The news is helping the rest of the eurozone. Germany is the largest economy in the 17-nation currency bloc, and it often leads the way. Plus, the fact that Germany’s exports are increasing to the eurozone indicates that the currency region is recovering — albeit slowly.

Unemployment in the eurozone eased a little bit, and retail sales gained in August. With the eurozone moving out of recession, the euro is finding support. However, many of these modest gains might be put off track with the difficulties in the United States. Problems with the US economy, due to government shutdown, could spread far and wide.

At 13:51 GMT EUR/USD is up to 1.3600 from the open at 1.3580. EUR/GBP is down to 0.8435 from the open at 0.8437. EUR/JPY is up to 131.9750 from the open at 131.3120.

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