Morning Forex Fundamental: EUR

Morning Forex Fundamental: EUR

The German labour market convinced with a distinct robustness in the second half of last year and the beginning of this year' - Heinrich Bayer, an economist at Postbank Research

The number of people out of job in the Europe's largest economy turned lower this month, adding to signs that a pickup in German economy is gathering pace. According to the Federal Labor Agency, there were 16,000 unemployed people less in January, than in the preceding month. The total number of jobless people stood at 2.92 million, while economists predicted an increase of 8,000. The adjusted jobless rate declined to 6.8% this month, reaching a two-decade low. Last week, the Bundesbank claimed that the economy may start to recover after its fourth-quarter slump, when gross domestic product may have dropped as much as 0.5%, and the improvement in the labour market may reflect some positive changes in the economy as well.

'The German labour market convinced with a distinct robustness in the second half of last year and the beginning of this year,' said Heinrich Bayer, an economist at Postbank Research in Bonn. 'No debt crisis, no economic weakness can hurt it. But it's too early to sound the all clear because the labour market reacts with delay to economic developments. Unemployment could still rise.'

'The unfavorable economic environment has only left a few scratches on the labor market,' said BA chief Frank-Juergen Weise.