The rate of unemployment in the eurozone keeps growing at a steady pace. In September alone, the army of unemployed Europeans living in the eurozone boosted by 146K people. The current rate is 11.6%, which is 18.5 million people. Therefore, the European labor market went 17 years back, when there was no common European currency. Spain is the frontrunner with 25.6% unemployed.
The economy is in stagnation. Consumer activity declines amid steady unemployment. Retailers have to lower prices. There is a threat of deflation in the region. The eurozone rate of inflation increased by 2.5% against September’s 2.6%.
Debt crises need austerity. However, more experts urge European politicians to bet on growth stimulation in order to avoid an economic collapse. They say that growth is now the key problem for the entire eurozone as the latest austerity plans and structural reforms have had a negative impact on economic growth so far. The economy is slowing down, which inevitably leads to higher unemployment.
Forex.
The chart below, courtesy of , reflects the current state of affairs in the market of EURSD.
The currency pair is forming wave C of level h1. There is a major retracement inside that wave. If the structure of the wave is broken, we may see the market resuming the mid-term downtrend. Otherwise, the price will most likely go further up to 1.3038.
Alex von Stachelkopf, аналитик отдела "Форекс, курс евро", трейдер кафедры СРП Академии трейдинга Masterforex-V
