THE TAKEAWAY: Italian unemployment for July at 10.7%, according to preliminary estimate -> Italy’s recession deepens -> Euro trading steady in today’s session
Italy’s unemployment rate remained steady at a record high in July according to a preliminary estimate. July’s unemployment (seasonally adjusted) was 10.7%, which beat expectations for a 10.9% unemployment rate. July’s unemployment remained unchanged from June’s revised 10.7% rate, which was the highest in at least 5 years. The unemployment rate for the second quarter reached 10.6%, which was the highest in over a decade, according to Istat.
The industrial sector saw the biggest employment losses, with the amount of employed workers dropping 0.3% in 2Q. The services sector saw a 0.3% rise in the amount of workers employed.
Italy’s deepening recession has been one of the main causes of the Euro debt crisis, and the government’s rising debt costs are being addressed by discussions over a possible ECB plan to purchase bonds from Italy and Spain.
Although the unemployment rates were at record highs, the Euro still rose slightly following the release because the rates were better than expected. The key 1.2500 level continues to provide support for EURUSD trading in today’s session. The monthly high at 1.2589 could provide resistance.
EURUSD 15-minute: August 31, 2012
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