The Euro weakened against the Pound for a second day as tensions over a possible military strike against Syria and disappointing German unemployment data dragged upon the single currency.
The number of Germans out of work increased for the first time in three months in August despite a continuing expansion of the Eurozone’s largest economy. The data overwrote the positive news to go from France, Portugal and Spain.
According to the Nuremberg based Federal Labour Agency, the number of Germans out of work rose to a seasonally adjusted 7,000 to 2.95 million. Economists had been predicting the figure to decline by 5,000. Despite the rise the overall unemployment rate remains at a twenty year low of 6.8%.
Germany led the Eurozone out of its longest ever recession and is expected to continue to strengthen in the second part of 2013.
“If data that signal the economy will gather pace in the second half of the year are to be believed, there’s a good possibility that employment will increase and unemployment will drop next year, in the Euro area, there’s at least hope that the worst is behind us,” said Jens Kramer an economist at NordLB.
The worst does indeed appear to have been passed as today saw positive data releases from a number of Eurozone nations.
Business confidence in France rose to 90, up from the 87 recorded in the previous month and beating forecasts of a rise to 87.7.
Spain saw the rate of its economic decline slow to -0.1%; the nation is still in recession but now looks as though its crisis could finally be bottoming out.
Consumer confidence in Italy also beat expectations, coming in at 98.9.
Euro (EUR) Exchange Rates
As of 10:00 am
The Euro/US Dollar Exchange Rate is currently in the region of: 1.3269 <
The Euro/Pound Sterling Exchange Rate is currently in the region of: 0.8552 <
The Euro/Australian Dollar Exchange Rate is currently in the region of: 1.4841<
The Euro/ New Zealand Dollar Exchange Rate is currently in the region of: 1.7026 <
The Euro/ Canadian Dollar Exchange Rate is currently in the region of: 1.3927 <