The German industry has delivered surprisingly positive growth data. Unemployment in New Zealand is growing at a slower pace.
Good data from the German industry
Yesterday, we received data from the German industry. The results are significantly better than expected. To better understand how dire the situation is over there, it is worth noting that since February 2022, this is only the second annual report showing growth above zero. In a monthly context, we have a growth of 8.9%, which far exceeds expectations. If the German economy’s shortness of breath were a thing of the past, this would be a strong signal to strengthen the Euro. It is the potential problems of the major economies of the Eurozone that make investors expect interest rate cuts in Europe more quickly.
Unemployment rise in New Zealand
New Zealand has been in an unpleasant job market cycle for two years. Two years ago, the unemployment rate was 3.2%. Since then, each quarter has seen a stabilization or increase in this parameter. Yesterday’s data confirmed an increase to 4%. Although this is another 0.1% deterioration, which should be bad news, the market expected a 0.3% increase, so a smaller rise is actually good news. How good this news is, is best shown by the reaction of the foreign exchange markets. The New Zealand dollar’s rate clearly gained against its US counterpart after the publication of these data. The change was also evident against other currencies, like the often-referenced Australian dollar.
Maciej Przygórzewski – Chief Analyst at InternetowyKantor.pl and Walutomat.pl
