(MENAFN– ecpulse) European markets will be closely bracing for another round of key economic fundamentals due Thursday, as traders wait possible prove the euro-area`s largest economy is starting to advance.
Looking ahead, Spain will take center stage as the country releases second quarter growth report followed by Germany with jobs data expected to show unemployment rate stood at 6.8 percent in August.
- Unemployment change in Germany may rise to -5 K vs. -7 K
- Unemployment rate probably paused at 6.8 percent
- August CPI inflation is forecasted to fall to 0.1% vs. 0.5%
- CPI-EU Harmonized expected to fall to 0.1% from 0.4%
Data released today is expected to show labor sector in Germany remains fragile amid the lingering effects of the harsh austerity measures implied by the government to put down the Germany’s recorded 0.6 percent contraction in the fourth quarter of 2012, the worst contraction in four years.
However, improvement has started to take place as the enormous economy is showing ongoing improvement and is leading the recovery in the euro zone with strong 0.7 percent growth in the second quarter. A strong economy will likely help Chancellor Angela Merkel in her bid for a third term in general elections due on September 22.
Earlier in the week, a better-than-expected IFO estimate of German Business Climate triggered gains and cleared the way for the euro. While June GFK forward-looking sentiment survey eased from six-year high at 6.9 in September compared with a 7.0 in August.
Some people are actually positively looking forwards to the third quarter of this year, forecasting a rebound in German economic growth. Economists now believe that the German economy will expand at a faster rate than the government`s current forecast of 0.5 percent growth this year.
As of 08:37 (GMT+2) the euro traded at $1.33137 after opening at $1.33387. The EURUSD pair set an intraday high of $1.33424 and low of $1.33117.
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