German jobless claims fell unexpectedly in February, showing the resilience of the German labor market in the face of the spreading coronavirus epidemic. Jobless claims fell by 10,000 in February after falling by a revised 4,000 in January, the Federal Employment Agency said on Friday. The preliminary reading for January showed a fall of 2,000..
* January consumer spending down unexpectedly 1.1% m/m. * INSEE confirms Q4 GDP contraction. French consumer spending fell unexpectedly sharply in January, official data showed on Friday, flagging a weak start to the year even before the coronavirus outbreak began taking its toll.
German unemployment dropped unexpectedly in February, the Federal Labour Office said on Friday, suggesting that the strong job market will continue to propel growth in Europe's largest economy. Data from the Labour Office showed the number of people out of work fell by 10,000 to 2.262 million in seasonally adjusted terms. The unemployment rate was steady at 5.0%.
Market gauges of euro-dollar one-month implied volatility jumped on Friday to their highest in over a year at 6.6% as the intensifying coronavirus outbreak fuelled big currency moves and recession fears. The Japanese yen, appeared to have regained its safe-haven status after last week's brief wobble, rising to a 3-1/2-week high of 108.79 versus the dollar.
British consumer confidence rose for a third straight month in February, continuing an upward trend as Britons anticipate a stronger economy now that an impasse in the Brexit process has been resolved. An index of consumer confidence gathered by market-research firm GfK rose two points to minus seven in January, beating a consensus forecast of economists who had predicted it would remain steady at minus nine. The index was pulled higher by continued improvements in how the...
* Yen rises 0.7% vs dollar, jumps 1.4% on Aussie. * Graphic: World FX rates in 2020 https://tmsnrt.rs/2RBWI5E. By Tom Westbrook. The Japanese yen returned as a beacon of safety on Friday, hitting a one-month high against the dollar, as mounting fears the world was on the cusp of a pandemic sent global financial markets into a tailspin.
* Yen rises 0.5% vs dollar, jumps 1.2% on Aussie. * Euro/dollar volatility surges. * Graphic: World FX rates in 2020 https://tmsnrt.rs/2RBWI5E. By Tom Westbrook. The Japanese yen returned as a beacon of safety on Friday, hitting a one-month high against the dollar as deepening worries about coronavirus sent global financial markets into a tailspin.
Japan's factory output rose more than expected in January, providing some relief for policymakers amid heightened risks of a recession as the coronavirus outbreak in China disrupts supply chains and business activity.
Japanese Prime Minister Shinzo Abe said on Friday the government will take policy steps if needed to ensure the coronavirus outbreak does not inflict damage to the economy. "I'm aware of views that if the virus spreads, it could have a huge impact on the economy," Abe told parliament.
* Euro soars as Fed cut expectations hit dollar. * Euro/dollar volatility surges. * Graphic: World FX rates in 2020 https://tmsnrt.rs/2RBWI5E. By Tom Westbrook. The dollar nursed losses on Friday after its worst day against the euro in nearly two years, as the global spread of the coronavirus fired up expectations for a U.S. rate cut and pushed the hunt for yield elsewhere.
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