Contrary to the current trend in major currencies this morning, the Euro is slightly lower – down 0.5% at 1.3069 – on the heels of worse than anticipated figures for the region.  The sentiment has taken the single currency further through support at 1.3100 – lending to speculation of further short term declines.

According to the Federal Statistics Office, retail sales in Europe’s largest economy dropped in the month of December. Declining by 1.4%, the report showed a year over year decline of 0.9%.  The figures are especially disappointing when considering that the market was looking for a 0.9% increase on the month over month comparison.  It seems that the weight of the current crisis hovered over consumer sentiment in the month, lending to poor sales at domestic outlets.  However, the sentiment and effects are likely to be temporary as recent figures point to a potential rebound in consumer spending for the immediate future.  Recent sentiment survey findings show that morale surprisingly increased to a 10-month high heading into February.

The lower than expected retail figures are being combined with findings that unemployment in the Eurozone has risen to the highest level on record.  In the month of December, Eurozone unemployment rose to 10.4% – according to Eurostat reports.  Gloomy, the report reflects a growing rate of unemployment, with Spain leading the charge.  Nationally, the Spanish economy is exhibiting a 23% rate of unemployment – which approximates to about one third of overall unemployment in te Eurozone.  The figure translates into 16.5 million people in the zone that remain unemployed.

Today’s figures are likely to highlight the current troubles within the region as leaders continue their summit during the session.