Investing.com - Financial Markets Worldwide
🎁 💸 Warren Buffett's Top Picks Are Up +49.1%. Copy Them to Your Watchlist – For FreeCopy Portfolio

Euro Steady at $1.30 Despite Rising Unemployment

ByBenzinga
AuthorBenzinga
Published 06/03/2013, 08:39 AM
Updated 05/14/2017, 06:45 AM
ACT
-

The euro began the week steadily at $1.30 on Monday morning even after data revealed that unemployment across the region was still climbing. With the European Central Bank policy meeting approaching on Thursday, many are wondering if the bank will take further action to help kick start the region's economy.

Data out on Friday showed that eurozone unemployment rose to a record high at 12.2 percent. Countries that received bailouts posted even higher jobless rates, with Spain and Greece topping the charts with more than 25 percent of their populations unemployed.

Also concerning was youth unemployment, which has been a growing problem for the region. The latest data showed that 24.4 percent of people under 25 were unemployed, which translates to around 3.6 million people.

The dismal unemployment data came one week before a much anticipated European Central Bank meeting at which some are expecting a bold move from the region's finance ministers. Following May's meeting, where eurozone finance ministers agreed to cut the interest rate to a record low, Bank President Mario Draghi claimed the bank was prepared to take the deposit rate below zero if need be. Cutting the deposit rate would mean banks were essentially penalized for holding large amounts of cash and could flood the markets with euros.

At a conference in Shanghai, Reuters reported that Draghi claimed that the eurozone was showing signs of stabilization and that he was expecting a very gradual recovery in the second half of the year.

Despite calls for looser fiscal policies, Draghi said that eurozone nations must follow through with structural reforms in order to maintain the recovery path and restore the eurozone's competitiveness.

BY Laura Brodbeck

Latest comments

Loading next article…
Install Our App
Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.