Yesterday the German federal labour office released the unemployment rate data that stayed unchanged at 6.4 % in July, the lowest level since 1991, despite an unexpected rise of 9K jobless. Despite the small increase in non-seasonally adjusted terms, German labour market report displays a strong German economy.
Official data showed yesterday that German inflation continues to slow and hit 0.2% a five-month low in July, raising pressures on the European Central Bank (ECB) to continue its expansionary monetary policy.
The annual inflation in the euro zone is scheduled to be released today. Investors are expecting that the reading would also remain weak and the unemployment rate is estimated to stay unchanged at 11.1%.
Since the beginning of the year the European locomotive has rose more than 15.0% and is in a warning phase. The Ger30 moved back and forward and close near the open of the day, creating a doji candle pattern, signs of indecision in the market while testing a daily resistance. The stochastic is showing a bearish momentum and is below the 50 mid line.
Ger30 is a CFD written over DAX30 futures.
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