According to data compiled by Reuters News Agency, unemployment in struggling Eurozone nations Greece, Spain and Portugal will continue to rise.
Joblessness is already at record levels in these countries, but in a poll of economists the majority asserted that the unemployment rate will hold above the 27 per cent mark until as late as 2015.
As stated by one of the survey’s participants, economist Alan McQuaid, ‘The endless fiscal austerity simply hasn’t worked and unemployment – particularly youth unemployment – remains a serious problem for the Eurozone. In the absence of pro-growth measures the jobless rates in ‘peripheral’ countries will remain elevated for some time.’
The Euro/Pound pairing is currently trading in the region of 0.8584
Meanwhile a separate poll cited youth unemployment as the biggest threat to the Eurozone’s economic stability.
However, the latest survey did show that Spain and Portugal are expected to return to growth (albeit lacklustre growth) in 2014, while it is hoped that Greece might finally escape the shadow of recession which has been hanging over it for the last six years.
But one Madrid-based economist noted: ‘We’re in for another couple of difficult years. [Spain] won’t be seeing strong growth any time soon, considering the imbalances which the country has created and must fix, so, at the moment, I can’t see substantial growth in Spain until 2016 at the earliest.’
Similarly, Greek economist Angelos Tsakanikas observed: ‘The overall picture remains mixed. The restoration of balance in the twin deficits – the current account and budget gaps – which reflected the Greek economy’s [disease] for years, is a positive sign.’
The most influential piece of Eurozone data due for release today, a gauge of consumer confidence in the 17-nation currency bloc, is expected to rise from -18.8 to -18.3 in July.
An unexpected result could spark Euro movement.
As the European session opened the Euro continued to trade strongly against a broadly softening US Dollar. Yesterday’s worse-than-forecast US housing data saw the ‘Greenback’ hit its lowest level against the Euro for over a month. Additional movement in the EUR/USD pairing could result from today’s US house price index.
The Euro’s recent bearish trend with the British Pound continued yesterday as the British currency remained bolstered ahead of this week’s UK GBP data. However, as local trade began the EUR/GBP pairing was attempting to push above the 86 pence per Euro resistance level.
Euro (EUR) Exchange Rates
As of 08:50
The Euro/US Dollar Exchange Rate is currently in the region of: 1.3188 >
The Euro/Pound Sterling Exchange Rate is currently in the region of: 0.8584 <
The Euro/Australian Dollar Exchange Rate is currently in the region of: 1.4229 <
The Euro/ New Zealand Dollar Exchange Rate is currently in the region of: 1.6493 <
The Euro/ Canadian Dollar Exchange Rate is currently in the region of: 1.3620 >