The dollar is gaining ground against the Euro Wednesday, but is little changed in comparison to the British pound and the Japanese Yen. Economic data from the Eurozone proved mixed today, while U.S. private sector employment logged an unexpected increase.
Reflecting strong job growth at large businesses, payroll processor ADP released a report on Wednesday showing stronger than expected private sector job growth in the month of September. The report said private sector employment jumped by 200,000 jobs in September following a downwardly revised increase of 186,000 jobs in August.
Economists had expected an increase of about 190,000 jobs, which would have matched the job growth originally reported for the previous month.
With production growth collapsing and new orders falling sharply, MNI Indicators released a report on Wednesday showing an unexpected contraction in Chicago-area business activity in the month of September.
MNI Indicators said its Chicago business barometer tumbled to 48.7 in September from 54.4 in August, with a reading below 50 indicating a contraction. Economists had been expecting the business barometer to show a much more modest decrease to a reading of 53.6, which would have still indicated growth.
The dollar has climbed to around $1.1170 against the Euro Tuesday afternoon, from around $1.1260 yesterday.
The euro area unemployment rate remained unchanged at an elevated level in August as businesses generated fewer jobs amid weak economic growth. The jobless rate held steady at double-digit 11 percent in August, data from Eurostat showed Wednesday. The figure was expected to remain at July’s originally estimated rate of 10.9 percent.
Eurozone experienced deflation in September for the first time in six months as energy prices decreased further adding pressure on the European Central Bank to initiate more quantitative easing. Consumer prices fell unexpectedly by 0.1 percent year-on-year in September, offsetting a 0.1 percent rise in August, flash data from Eurostat showed Wednesday. Economists had forecast prices to remain flat.
German unemployment increased unexpectedly in September, reports said citing data from the Federal Labor Agency on Wednesday. The number of unemployed increased by 2,000 from August, confounding expectations for a decline of 5,000.
At the same time, the jobless rate stood steady at 6.4 percent in September as expected by economists.
Germany’s retail sales decreased unexpectedly in August after rising in the previous month, data from Destatis showed Wednesday. Retail sales, in real terms, fell a seasonally and calendar-adjusted 0.4 percent month-over-month in August, confounding economists’ expectations for a 0.2 percent increase. In July, sales had risen 1.6 percent.
Germany’s unemployment rate dropped marginally in August, figures from Destatis showed Wednesday. The jobless rate dropped to an adjusted 4.5 percent in August from 4.6 percent in the previous month. In the corresponding month last year, the rate was 5.0 percent.
French producer prices continued its downward trend in August largely due to a sharp decrease in refined petroleum product prices, the statistical office INSEE reported Wednesday. Producer prices declined 2.1 percent in August from last year after falling 1.6 percent in July.
France’s consumer spending remained unchanged in August, after rising in the previous months, as smaller changes for most of the goods offset each other, statistical office INSEE said Wednesday. Consumer spending in volume remained steady after a 0.3 percent rise in July and 0.4 percent in June.
The buck fell to an early low of $1.5213 against the pound sterling Wednesday, but has since bounced back to around $1.5135.
The U.K. economy grew as initially estimated in the second quarter, data from the Office for National Statistics showed Wednesday. Gross domestic product grew 0.7 percent from the first quarter, unrevised from the second estimate published on August 28. It was faster than the 0.4 percent expansion seen in the first quarter.
U.K. house prices grew at the fastest pace in four months in September, the Nationwide Building Society said Wednesday. House prices increased 3.8 percent year-on-year in September, the fastest since May, when it grew 4.6 percent. The annual growth matched expectations and faster than August’s 3.2 percent increase.
Consumer confidence in the United Kingdom was down in September, the latest survey from GfK showed on Wednesday with an index score of +3. That was shy of expectations for +5 and down from +7 in August.
The greenback reached an early high of Y120.348 against the Japanese Yen Wednesday, but has since slipped back to around Y119.860, nearly unchanged for the session.
Industrial output in Japan fell a seasonally adjusted 0.5 percent on month in August, the Ministry of Economy, Trade and Industry said in Wednesday’s preliminary reading. That was well shy of forecasts for an increase of 1.0 percent following the 0.8 percent decline in July.
Retail sales in Japan were up 0.8 percent on year in August, the Ministry of Economy, Trade and Industry said on Wednesday. That missed expectations for an increase of 1.2 percent following the 1.8 percent jump in July.
Japan’s housing starts increased for the sixth consecutive month in August, data from the Ministry of Land, Infrastructure, Transport and Tourism showed Wednesday. Housing starts grew 8.8 percent in August from last year, faster than the 7.4 percent increase in July and 7.6 percent rise forecast by economists.
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