Trade Desk Thoughts - Euro-area Unemployment Rate

Euro-area Unemployment Rate Actual 7.5%, Expected 7.3%, Previous 7.4% (revised from 7.3%)

Release Explanation: Measures the number of jobs created, or the percentage of employed/unemployed in the labor market. Over time the Employment Data will affect all economic releases, it does however take time for labor trends to form.

Trade Desk Thoughts: The unemployment rate in the Euro-area rose to a higher level than expected, 7.5%, versus analyst expectations of 7.3%. The unemployment rate for the month of July was revised up, to 7.4%. Around 11.596 million persons work in the Euro-area, up 90 000 from one month earlier in August. In August 2007, the unemployment rate in the 15 countries was also 7.4%. Earlier this year, the unemployment rate dipped to the 7.2% value.

Forex Technical Reaction: The unemployment rate was another release that failed to move the market in any way. It seems that traders are now focused solely on the bailout plan. Since the Asian session started, the euro has moved side-ways.

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