Euro Declines on Unemployment Report

The single European currency declined today to the levels close to its 2-week low before and after the report on Eurozone February unemployment negatively surprised the traders.
The Japanese yen, the U.S. dollar and the British pound all gained against the euro as the investors expected that the jobless rate will grow in the Eurozone at faster pace than the analysts have predicted earlier. After the report was released the euro rolled back up somewhat but is still remaining in negative zone. The report showed that the unemployment rate rose from 8.3 percent (revised up from 8.2 percent) to 8.5 percent, while analysts predicted a rate of 8.3 percent.
The released fundamental data signal a deepening of the recession with the positive impulse for the «safe haven» currencies (that may soon become not very safe). Now some analysts point at the fundamental weakness of the euro compared to the dollar as the main trend-setter for Forex market.
EUR/USD fell from 1.3242 to 1.3220 as of 10:18 GMT, touching the daily low at 1.3165 earlier. EUR/JPY fell from 130.95 to 130.60, while EUR/GBP declined from 0.9245 to 0.9181 today.

If you have any questions, comments or opinions regarding the Euro,
feel free to post them using the commentary form below.

Leave a Reply

Your email address will not be published. Required fields are marked *