Euro Lower as Unemployment Reaches Another High

Euro is heading lower today as risk aversion sets in, and as Forex traders consider that unemployment in the eurozone is hitting yet another high. With economic concerns, and with commodities in retreat, there isn’t much to support the euro right now.

Eurozone unemployment hit 12.2 per cent in April, according to Eurostat. In places where the sovereign debt crisis hit hardest, though, unemployment is huge problem. Youth unemployment is particularly alarming to European officials. In Greece, youth unemployment is at 62.5 per cent, and it is at 56.4 per cent in Spain.
There is fear that this will lead to entrenched unemployment in areas of the eurozone moving forward. Additionally, this sign of a lagging economy continues to weigh on the euro, especially against the US dollar. The prospect of an end to some quantitative easing measures in the United States, and the continuation of difficulties in the eurozone, are weighing on EUR/USD.
Eurozone economic recovery seems to be moving slowly, as European leaders can’t seem to agree on the best course of action. France and Germany are leading opposed sides of the question, and it doesn’t seem as though things will improve anytime soon.
At 15:03 GMT EUR/USD is down to 1.2970 from the open at 1.3050. EUR/GBP is down to 0.8550 from the open at 0.8568. EUR/JPY is down to 130.8300 from the open at 131.4435.

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