Although the measure still remains stunningly high relative to other advanced global economies, the Euro Area has continued to make progress on fighting unemployment despite the complete absence of fiscal stimulus measures. The unemployment rate fell to 9.80% during the month of October, marking the best reading since July of 2009. Besides the great headline figure, the prior month’s figure was also revised lower as the extremely loose monetary policy environment helps stimulate private sector investment. According to recent comments from officials and analysts, the European Central Bank is forecast to announce an extension of its existing asset purchase program for an additional 6-months even though there have been difficulties in expanding the available supply. After closing flat on Thursday, EURGBP is back under pressure, trending around 0.8450.
Euro Area Employment Recovery Endures
Daily Analysis - 02/12/2016