Jobless rates weigh on euro

The euro is under pressure as the unemployment rate in the region remains above the 12% mark.

The euro is trading at $1.3586 against the dollar, down 0.2%, as the level of unemployment in the eurozone remained at 12.1% in November. This was in line with expectations but still highlights how little has changed in the region. More worrying is that the jobless rate in major eurozone counties like Italy and Spain is still rising, which has offset Ireland’s drop.

The European Central Bank will make its interest rate decision tomorrow at 12.45pm (all times London time). The consensus is to keep interest rates unchanged at 0.25%; dealers will be listening for clues from Mario Draghi at the press conference at 1.30pm.

The US revealed strong ADP employment figures which put further pressure on the euro. The report showed that 238,000 new private sector jobs were created when analysts were expecting an increase of 199,000. This could be an indication regarding the US unemployment rate on Friday.

At 7pm tonight, the Federal Reserve will release the minutes from its latest meeting, after which it was announced the stimulus package would be reduced. If tonight’s minutes are hawkish we could see the euro fall further. 

Spot FX EUR/USD chart

This information has been prepared by IG, a trading name of IG Markets Limited. In addition to the disclaimer below, the material on this page does not contain a record of our trading prices, or an offer of, or solicitation for, a transaction in any financial instrument. IG accepts no responsibility for any use that may be made of these comments and for any consequences that result. No representation or warranty is given as to the accuracy or completeness of this information. Consequently any person acting on it does so entirely at their own risk. Any research provided does not have regard to the specific investment objectives, financial situation and needs of any specific person who may receive it. It has not been prepared in accordance with legal requirements designed to promote the independence of investment research and as such is considered to be a marketing communication. Although we are not specifically constrained from dealing ahead of our recommendations we do not seek to take advantage of them before they are provided to our clients. See full non-independent research disclaimer and quarterly summary.

CFD’s zijn complexe instrumenten en brengen vanwege het hefboomeffect een hoog risico mee van snel oplopende verliezen. 79% van de retailbeleggers lijdt verlies op de handel in CFD’s met deze aanbieder.
Het is belangrijk dat u goed begrijpt hoe CFD's werken en dat u nagaat of u zich het hoge risico op verlies kunt permitteren.
CFD’s zijn complexe instrumenten en brengen vanwege het hefboomeffect een hoog risico mee van snel oplopende verliezen.