The Euro has weakened against the Pound and declined against the majority of its other peers after unemployment data highlighted just how weak the single currency region’s economic recovery has been.
Unemployment reached a new record high in Italy and youth unemployment remains at historic highs. Wednesday data showed that overall Eurozone unemployment stayed at 12.1% for another month. The figure however hides the stark differences between member states.
The southern nations continue to suffer the most with Spain posting the highest unemployment rate, a shocking 26.7%. Greece is expected to show that the number of citizens out of work increased from 27.4% to 27.7%. In the north however Austria posted a rate of just 4.8% and 6.9% in Germany.
Eurozone unemployment will remain close to these record levels for some time, warns Howard Archer of IHS Global Insight who said; “While signs of stabilizing labour markets are relatively encouraging, unemployment remains worryingly high across the Eurozone and it seems unlikely to come down markedly any time soon.
‘Although the Eurozone has been growing slightly since the second quarter of 2013, economic activity will likely remain too limited in the near term at least to generate many jobs.
‘Furthermore, while business confidence across the Eurozone has generally improved appreciably in recent months, many firms remain wary of the outlook. Firms are also aware of how difficult and costly it can still be to shed labor in some countries which can deter taking on new workers.”
The data also showed that out of the 28 members of the EU, 14 nations saw unemployment rise whilst 14 saw a fall, highlighting the disparity between member nations.
The Euro did find some support after factory orders data out of Germany showed a 2.1% rise in the number of new orders. The figure beat economist forecasts for a figure of 0.3%. On a yearly basis orders leapt by 6.8% compared to the previous year. Positive retail sales figures out of France and Portugal also offered some support.
The Euro is likely to see volatility tomorrow ahead of the European Central Bank’s interest rate decision and the publication of a number of important data reports.
Euro (EUR) Exchange Rates
As of 11:35 am GMT
The Euro/US Dollar Exchange Rate is currently in the region of: 1.3587
The Euro/Pound Sterling Exchange Rate is currently in the region of: 0.8277
The Euro/Australian Dollar Exchange Rate is currently in the region of: 1.5223
The Euro/ New Zealand Dollar Exchange Rate is currently in the region of: 1.6397
The Euro/ Canadian Dollar Exchange Rate is currently in the region of: 1.4688
The Euro/ Japanese Yen Rate Exchange Rate is currently in the region of: 142.3025
The Euro/Swiss Franc Exchange Rate is currently in the region of: 1.2374
The Pound Sterling/ Euro Exchange Rate is currently in the region of: 1.2078
The US Dollar/Euro Exchange Rate is currently in the region of: 0.7359
The Australian Dollar/Euro Exchange Rate is currently in the region of: 0.6569
The New Zealand Dollar/Euro Exchange Rate is currently in the region of: 0.6098
The Canadian Dollar/Euro Exchange Rate is currently in the region of: 0.6808
Swiss Franc/Euro Exchange Rate is currently in the region of: 0.8081
