Forex Trading News – German Retail Sales and labour data

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Germany’s Retail Sales data for May on month over month basis have declined sharply, the polled rate was for 0.5%, while the previous rate was for 0.6% and the actual rate came out at the surprising -2.8%. The year over year indicator came out at 2.2%, slightly below the forecast of 2.3%. The four year record drop was mainly blamed to the E. coli bacteria, which had negative impact on food sales. Moreover, the negative number may be seen as an indication of cooling of the German economy, after high levels of growth recorded on the previous year and during the first quarter of 2011. The Unemployment Rate published by the German Statistics Office was 7%, abiding by the forecast and in line with the previous rate. However the Unemployment Change, which is a measure of the changes in the number of unemployed people in Europe’s strongest economy, was released at -8 thousand, the expectation was for -17 thousand and the reading for May was again -8 thousand. For June there are 8 thousand less unemployed people, shrinking the number of unemployed labour force to 2.97 million. Overall the German policymakers are satisfied with the growth in the labour market, since mid 2009.