On Wednesday EUR/USD hit highest value for the session after economic data from Germany, regarding Unemployment Change.
The pair reached 1.2892 during European session, highest for the moment, after which consolidation followed at lower levels around 1.2885. The pair was to receive support at todays session low, 1.2837, while resistance was to occur at 1.2948, Tuesday highest value.
Earlier today official data came out and showed that the number of unemployed people in Germany during May rose by 21 000, considerably more than the expected 5000 and the registered increase during the previous period, 6000, according to the revised data. Taking into account the seasonal effects, Unemployment Rate in Germany remained intact at 6.9% during May in consonance with projections. Data showed that Labour market in Germany remained stable, regardless of the encountered difficulties in front of economic recovery. Spring season did not make way for improvement in the labour market. Disregarding the seasonally adjusted data, the number of unemployed people decreased by 83 000 to 2.973 million during May, which caused Unemployment Rate to dip to 6.8% from 7.1% during April. Such development is quite good, compared to the deep recession, experienced by Germanys neighbors in the Euro zone. Unemployment Rate in the single currency zone as a whole, reached a record high level of 12.1% during March.
The European Central Bank (ECB) diminished its benchmark rate to a record low of 0.5% earlier this month, while recent statements by senior officials from the bank have indicated that ECB was ready to further reduce costs of borrowing.
On the other hand, demand for greenback remained relatively strong on expectations FED to scale back its bond purchasing program later this year.