Euro Maintains Gains against US Dollar After August Labor Market Update
Labor markets across Europe remain under pressure as governments implement harsh austerity measures in an effort to clamp down the sovereign debt crisis. The Euro-zone’s Unemployment Rate, perhaps the best gauge used to measure the real economic impact by the crisis, remained at an all-time high of 11.4% in August, data released today showed. Similarly, the Unemployment Rate in July was revised higher to 11.4% from 11.3%.
The disparities between Europe’s periphery and core are growing: Spanish unemployment increased to 25.1% in August; whereas the German Federal Labor Agency today reported that German unemployment held at 5.5%. Taking a step back and looking at the Unemployment Rates over the past few years, it’s clear that the economic situation in Europe is worsening: one-year ago, the rate was 10.3%; five-years ago, the rate was 7.6%.
EURUSD 1-minute Chart: October 1, 2012
Charts Created using Marketscope – Prepared by Christopher Vecchio
Despite the upward revision in the Euro-zone Unemployment Rate in July, the Euro continued to push higher across the board, as the top performing major currency on the day. The EURUSD, which had been rallying from a session low of 1.2803, appreciated from 1.2893 ahead of the release to as high as 1.2907 soon after. At the time this report was written, the EURUSD was pressing session highs, trading at 1.2901.
--- Written by Christopher Vecchio, Currency Analyst
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