Close to the release of the all-important Non-Farm Payrolls, the Euro got some bad news and is now closer to the bottom of the range. Here’s an update.
The European Unemployment Rate disappointed with a rise to 10%. This rise was worse than early expectations for a rise to 9.9%. We also found out that last month’s figure was already at 9.9%. The figure was revised from 9.% to 9.9%.
Update: NFP fell by 85,000 – disappointment. But last month’s figure saw a rise of 4,000 – the first in two years. EUR/USD is rising but hesitating. Here’s my reaction post: US Gained Jobs In November – Dollar Bulls Not Giving Up
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This isn’t another disappointing figure. This double digit unemployment rate weighs heavily on Europe, especially on its flanks. Spain’s unemployment rate is at almost 20%. But this isn’t only a Spanish problem. Every 1 in 10 is unemployed. This figure perfectly matches the current American unemployment rate.
Technical Look: EUR/USD is now trading under 1.43, very far from the resistance range at 1.4444 to 1.4480. In the past weeks, EUR/USD was supported by 1.42 and resisted by this range. It’s now closer to the bottom of the range. More on the pair in the EUR/USD forecast.
Also German Industrial Production, released just now, disappointed with a small rise of 0.7%, less than 1.1% that was predicted. EUR/USD failed to break earlier this week, as it got good figures.
With these bad numbers, it’s weakness is clearly seen. EUR/USD needs a very bad Non-Farm Payrolls figure in order to rise.
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