Lower Eurozone Unemployment Helps the Euro

Euro is getting some help today from the fact that the latest unemployment numbers are showing improvement. With lower unemployment levels and Forex traders still interested in the carry trade, euro is getting some help today.

Looking across the eurozone, Eurostat reports that the average unemployment for July was 10.9 per cent. This is the lowest level for eurozone unemployment since early 2012. Coupled with other economic data that has been somewhat encouraging, some analysts hope that the eurozone is getting ready to turn a corner.
Support for the euro has improved on recent economic news. Additionally, euro is in demand as a carry trade as concerns about China prompt traders to look for new money-making strategies. Worry over what’s next for global markets is changing the situation right now and the euro is benefitting.
However, even with the current support and the seeming improvement in the economic fortunes of the 19-nation currency region, there are still questions about the long-term viability of the euro. Greece’s issues haven’t been fully resolved and there are some other periphery countries that could cause problems down the road.
At 14:44 GMT EUR/USD is up to 1.1247 from the open at 1.1211. EUR/GBP is up to 0.7335 from the open at 0.7306. EUR/JPY is down to 135.1590 from the open at 135.8970.

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