The European Union’s largest economy seems to have shown some improvement but households remain cautious with spending. German retail sales rose less than expected in April, growing 0.6 percent on a monthly basis versus an economists prediction of a 1.8 percent increase. This is however still a growth compared to the previous revised 2.7 percent drop in sales.
On an annual basis, the retail sales index gave a reading of an increase of 3.6 percent but this time higher than a predicted drop of 0.1 percent.
Meanwhile, the German economy is on the path to recovery as the unemployment rate dropped by 0.1 percent in May in line with predictions.
This is a considerably low unemployment rate compared to other Eurozone countries and this is expected to help support German consumer spending for the rest of the year if inflation is kept in check.
Despite the marginal change in the data, which was more disappointing than expected, the Single Currency was not significantly affected since it is still being supported by the early morning news that the Greek debt crisis will be resolved soon. EURUSD is currently trading at 1.4417 at 0823GMT rising 135 pips from 1.4282 at the open of Asian session.