Economic Data from the Eurozone Fails the EUR again…

It’s been a particularly busy start to the day on the Eurozone economic calendar.

Key stats included French consumer spending, French and Italian inflation, and German unemployment figures.

It was a mixed set of numbers, testing support for the EUR through the early part of the session, however.

The French Economy

In August, consumer spending rose by 1.0%, partially reversing a 2.2% slide from July. Economists had forecast a 0.1% increase.

Inflation figures were EUR negative, however. Month-on-month, consumer prices fell by 0.2%, with the Harmonised Consumer Price Index also down 0.2%. Economists had forecast declines of 0.1% respectively.

The German Economy

German unemployment figures also disappointed. In September, Germany’s unemployment rate held steady at 5.5% versus a forecasted decline to 5.4%. German unemployment fell by 30k in the month versus a forecasted 33k decline. In August, unemployment had fallen by 53k.

The Eurozone

For the Eurozone, unemployment figures were somewhat better, with the unemployment falling from 7.6% to 7.5%. Economists had forecast a decline to 7.5%.

Elsewhere

While the focus was on inflation, Italy’s inflation figures had a muted impact on the EUR. In September, consumer prices fell by 0.1% versus a forecasted 0.3% decline. Consumer prices had risen by 0.4% in August.

Market Impact

Ahead of today’s figures, the EUR had risen to a pre-stat high $1.16088 before easing back.

In response to today’s stats, the EUR fell to a post-stat and current day low $1.15916 before rising to a post-stat and current day high $1.16097.

At the time of writing, the EUR was down by 0.05% to $1.15921.

Next Up

Inflation figures from Germany together with finalized 2^nd quarter GDP and initial jobless claims from the U.S. Later in the European session, Chicago PMI figures for September will also draw interest.