Brussels reported that the level of unemployment remained at an all-time high of 12.1%. This report came in line with expectations, but dealers were particularly concerned about the level of youth unemployment in countries like Greece, where it is above 60%. It is clear from this morning’s announcements that the southern European nations are weighing on the entire region.
At 2pm (London time), James Bullard of the Federal Reserve is due to speak. The message from the most recent Fed meeting was that tapering of the bond-buying scheme would take place between now and the end of the year. The current stimulus package is having the desired effect, and yesterday’s report showed that the US economy grew by 2.5% in the second quarter of this year. But the bond-buying scheme is holding back the value of the US dollar. If Mr Bullard drops any hints about reducing the stimulus package in October or November, we could see traders sell the euro and buy the US dollar.