More good news from the euro-zone: the unemployment rate surprises with a drop from 10.8& to 10.7%.
Will this convince Draghi not to introduce more stimulus? Markets don’t think so. EUR/USD struggles under 1.06.
The unemployment level in the euro-zone was expected to remain unchanged at 10.8%, a relatively low level if we look at the peak of the crisis, but certainly a problematic level.
EUR/USD traded around 1.06 before the release.
Earlier, purchasing managers’ indices from the euro-zone came out slightly better than expected. More importantly, German unemployment dropped by 13K, significantly better than predicted and the unemployment rate dropped to 6.3% in the euro-area’s largest economy, also a beat.
The good figures enabled EUR/USD to break above 1.06 and reach 1.0619, but from there the pair dropped again.
It seems that the market wants to sell euros, with Draghi looming above markets.
ECB Preview: Short euro and long bunds opportunities
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