According to official reports, last month, the Spanish rate of unemployment went down to the lowest point in 4 years. For the first time since 2011, the amount of unemployed Spanish is under 5 million people. This is 20% of the working population. The highest rate of unemployment is among the youth. It is still 50%. However, the entire situation is improving.
In July – September, the rate of unemployment went down to 21,18%. For the sake of comparison, 4 years ago, it was 23% and grew all the way up to 27% in 2013. A drop down to 21% is good news for the Spanish economy. At the same time, the pace at which the rate of unemployment is going down is accelerating. The Spanish government hopes that efficient policies may result in creating 500K new jobs a year over the next 4-5 years.
Still, experts say that it is the quality of those jobs, not their quantity that should be taken into account. Q3 is the time when the tourist season is still underway, which creates a lot of temporary jobs in the service sector for the season.
All in all, experts say that the Eurozone economy has enliven a bit. However, this is taking place mainly at the cost of the local service sectors. In particular, the Eurozone’s Service PMI grew all the way up to the 2-month high of 54 points. At the same time, the Eurozone’s Manufacturing PMI remained around the 5-month low.
According to Markit, the Eurozone economy is not going to see its GDP grow over 1,5% this year. As the overall rate of employment is lagging behind in growth, there are still risks of entering a period of deflation. The ECB seems to be sharing this standpoint. Mario Draghi, president of the ECB, gave everyone to understand that the asset purchase program may be expanded in December 2015.
In the meantime, the SRP Department of Masterforex-V Academy reports that EURUSD is currently building an ABC pattern of level H4. Wave C of the pattern is likely to hit its next target, which is 1.0863.
