There was positive news for the Eurozone’s largest economy this morning as data showed that German retail sales climbed by more than expected in May.
Month-on-month seasonally adjusted sales rose by 0.8 per cent in May, following a negatively revised fall of 0.1 per cent in April.
Sales were forecast to increase 0.4 per cent.
Year-on-year sales were 0.4 per cent higher.
This latest report follows yesterday’s positive German unemployment figures, which showed an unexpected decline of 12,000.
In response to the retail sales data Frankfurt-based economist Stefan Muetze commented: ‘There’s a lot of positive numbers coming from the German economy at the moment. Retail sales are quite volatile which is why we’ve seen some ups and downs in the past months. In general, however, there is improvement.
After the report was published the Euro advanced on the Pound, but the common currency could experience further movement today following the publication of German inflation figures. Economists are expecting that the nation’s consumer price index will be up 1.8 per cent from a year ago, following a year-on-year advance of 1.6 per cent in May.
The German central bank has predicted that German inflation will average at 1.6 per cent in 2013 before dipping to 1.5 per cent next year.
Industry experts are regarding the possible gain in inflation as a minor issue in light of recent positive economic developments. As NordLB economist Jens Kramer notes: ‘A slight increase in the inflation rate is no reason for concern at the moment. It is still under 2 per cent and we are convinced it will stay there for the months to come.
Additional Euro movement could be inspired by this afternoon’s US data, including a purchasing manager index for Chicago.
Euro (EUR) Exchange Rates
As of 08:45
The Euro/US Dollar Exchange Rate is currently in the region of: 1.3050 >
The Euro/Pound Sterling Exchange Rate is currently in the region of: 0.8559 >
The Euro/Australian Dollar Exchange Rate is currently in the region of: 1.4096 >
The Euro/ New Zealand Dollar Exchange Rate is currently in the region of: 1.6718 <
The Euro/ Canadian Dollar Exchange Rate is currently in the region of: 1.3663 >