The latest economic data out of the eurozone, showing that unemployment rose for yet another month, doesn’t seem to be slowing the euro down much in trading. The 17-nation currency is gaining against its major counterparts, thanks in large part to the risk appetite that seems to be showing as we kick off a new month, and the start of the second half of the year.
Once again, the eurozone unemployment rate is on the rise. Eurostat reports that the jobless rate rose to 12.1 per cent in May, after a rise to 12 per cent in April. The unemployment rate in the eurozone has increased at a fairly steady rate since 2008, when the financial crisis hit.
Some think that the eurozone economy is likely to at least stabilize during the second half of this year, but economic growth probably won’t be dramatic enough to boost job growth. Problems with unemployment are especially dire amongst the youth, where the unemployment rate is 23.8 per cent, and in the periphery.
Even though the economic news is difficult, the euro is still gaining today. There is enough hope that things will improve in the eurozone, as well as risk appetite, to boost the currency.
At 15:46 GMT EUR/USD is up to 1.3060 from the open at 1.3015. EUR/GBP is up to 0.8565 from the open at 0.8558. EUR/JPY is up to 130.1100 from the open at 129.1700.
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