The German labor market weakened for the fifth month in March as unemployment increased 69K during the month, after rising 50K in February. The downturn in employment pushed the jobless rate to 8.1% from a revised reading of 8.0% in the previous month, and conditions are likely to get worse as market participants expect Europe's largest economy faces its worst recession since World War II.


Fundamental Headlines


• U.S. Threatens Auto Bankruptcy
- Wall Street Journal
• Google Plans Venture Fund - Wall Street Journal
• China and Argentina in currency swap - Financial Times
• Financial Rescue Approaches GDP as U.S. Pledges $12.8 Trillion - Bloomberg
• Yen Falls as Aso Gives No Stimulus Details; Irish Spread Widens - Bloomberg

EURUSD
- The German labor market weakened for the fifth month in March as unemployment increased 69K during the month, after rising 50K in February. The downturn in employment pushed the jobless rate to 8.1% from a revised reading of 8.0% in the previous month, and conditions are likely to get worse as market participants expect Europe's largest economy faces its worst recession since World War II. Meanwhile, the outlook for inflation in the Euro-Zone dropped more than expected as the annual rate slipped to 0.6% from 1.2% in February, which is the lowest level of price growth since the euro was introduced in 1999. In addition, a report by the OECD showed that the think-tank expects the euro-region to contract 4.1% this year and 0.3% 2010, while unemployment is projected to reach an annual rate of 10.1% in 2009 and 11.7% in the following year, and at the same time, the group forecasts inflation to average 0.6% throughout 2009. The weakening outlook for growth paired with wide spread evidence of falling prices would warrant a rate cut by the ECB this week as the central bank maintains a 2% target for inflation. Discuss the topic and your trade ideas in the EUR/USD Forum.

CHFUSD - The UBS Swiss consumption indicator slipped to 0.886 from a revised reading of 0.922 in January as households remain fearful of a deepening recession in the region. The data continues to highlight a weakening outlook for the Swiss economy as growth prospects deteriorate at a rapid pace, and the outlook for private-spending remains bleak as households face a weakening labor market. As a result, the Swiss National Bank has slashed its interest rate close to near zero, purchased corporate bonds and intervened in currency markets in a bid to stem the risks for deflation however, as the export-driven economy faces its worst recession in over a quarter century, the conditions are likely to get worse as trade conditions falter. For more news and resources, visit the new Swiss franc Currency Room.