Euro unemployment remains high
Euro-area unemployment remained at a record high in June even as the economy emerged from the longest recession. The rate remained at 12.2 percent last month, which would match the result for May, the highest since records began. Though the Euro economy is showing signs of emerging from its recession and resuming growth after manufacturing output unexpectedly expanded in July for the first time in two years and German business confidence improved for a third month.
German inflation may have slowed in July for the first time in three months, indicating price gains in Europe’s largest economy remain quiet. Germany’s consumer price index, calculated using a harmonized European Union method, rose 1.8 percent from a year ago, compared with 1.9 percent in June.
The Euro was nearly unchanged against the U.S. Dollar today, after the release of positive German data, as markets were jittery ahead of the Federal Reserve’s and the European Central Bank’s policy-setting meetings this week.
As the market positions itself for the Fed Reserve, BoE and ECB rate decisions, GBP/EUR has fallen around 0.3%.