German Unemployment Falls in May

German unemployment data for the month of May show a greater than expected decline in the number of unemployed people. The seasonally adjusted unemployment change number fell by a better than expected 6,000 in May, a fall of 5,000 had been estimated.

German GDP for the first quarter and inflation figures throughout the second quarter have all pointed toward a robust performance from the German economy. However, the uncertainty thrown up by the U.K.’s vote to leave the European Union now threatens to undermine the relative prosperity of the bloc’s largest economy.

Developments in Brexit discussions will be a large influence over the German economy and stock markets during the months ahead, given the extensive trade links between the two nations. The U.K. is Germany’s third largest export destination globally and Germany is the U.K.’s largest export market in the EU.

Should the U.K. enter into a recession in the short term, or find it is locked out of European Union export market in the long term, then the German economy and the nation’s stock markets will not go unscathed.

via The Street

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Alfonso Esparza

Alfonso Esparza

Senior Currency Analyst at Market Pulse
Alfonso Esparza specializes in macro forex strategies for North American and major currency pairs. Upon joining OANDA in 2007, Alfonso Esparza established the MarketPulseFX blog and he has since written extensively about central banks and global economic and political trends. Alfonso has also worked as a professional currency trader focused on North America and emerging markets. He has been published by The MarketWatch, Reuters, the Wall Street Journal and The Globe and Mail, and he also appears regularly as a guest commentator on networks including Bloomberg and BNN. He holds a finance degree from the Monterrey Institute of Technology and Higher Education (ITESM) and an MBA with a specialization on financial engineering and marketing from the University of Toronto.
Alfonso Esparza