Euro Area Unemployment Rate at 10.3%

Unemployment has fallen by a month on month 0.1% down to 10.3% in the euro area for February, according to the latest figures from Eurostat.

Despite the marginal decline in the data, this is the lowest total recorded in the euro area since August 2011.

Compared to a year ago, the figures are more favourable, as unemployment on February 2015 was 11.2%.

For the whole of the European Union, the number of those out of work remained unchanged month on month, at 8.9%.

Following the trends of the euro area, unemployment was down year on year compared to the 9.7% out of work in February 2015, and the current figure is the lowest in the EU recorded since May 2009.

Among the Member States, the lowest unemployment rates in February 2016 were recorded in Germany  on 4.3%  and the Czech Republic with 4.5%.

The highest unemployment rates were observed, perhaps unsurprisingly, in Greece  with a significant 24.% inactive, from data in December last year.

Even though they have made improvements to their high unemployment rate, Spain still have the second highest amount of people without work on 20.4%.

Industrial producer prices down by 0.7% in Euro Area

In February 2016, compared with January 2016, industrial producer prices fell by 0.7% in the euro area,  and by 0.6% in the EU28, according to the latest Eurostat estimates

The fall in costs has eased compared to the figures for January 2016, where  prices decreased by 1.1% in both zones.

Year on year, in February 2016, compared with February 2015, industrial producer prices fell by a considerable 4.2% in both the euro area and the EU.

The figures will be a further disappointment to the European Central Bank in their quest to reach their premium inflation target of 2%. Inflation spiralled downwards to a minus 0.2% in February.

The latest decrease in prices month on month, can mainly be attributed to the fall in energy sector bills by 2.1%.

And a drop of 0.4% for intermediate goods costs, and additionally a reduction  of 0.2% for nondurable consumer goods.

Prices remained stable for capital goods and increased by 0.1% for durable

consumer goods, while costs in total industry excluding energy fell by 0.2%.

Euro Begins Week Increasing Against the Dollar

The euro has began the week continuing its bullish trend against the US dollar, and the EUR/USD rate is currently $1.13 Central European Time (CET).

LMAX Exchange in their daily report said that the market remains well supported on buying stocks, reaching fresh 2016 highs.

Overall, the broader EUR/USD downtrend remains intact they opined,  and with the price now trading up towards 1.1500, there is risk for another topside failure and bearish reversal.

Also, the forex company says to look for additional upside to remain well capped below EUR/USD 1.15 on a daily close basis, while ultimately, only back above 1.170 would force a shift in the structure.

A break below 1.1335 will help to strengthen this outlook, and alleviate immediate topside pressure.

The GBP/USD rate is currently a pound buying $1.422 GMT, and has climbed steadily higher from below the $1.42 mark yesterday afternoon.