The latest employment figures presented a moment of good reading as the employment rate fell to 7.5% for May which was last seen in 2008 before the financial crisis. However, whilst the top line figure was positive the more troublesome economies made for tough reading.

Currency Pair% Change (Month)Difference on £200,000
GBPEUR1.84%€4,100

Italy 9.9%, Spain 13.6% and Greece 18.1% unemployment really expresses the issues in certain countries. Furthermore, youth unemployment in May across the whole Eurozone was 15.1% with Greece recording just over 40%.

Weak PMI Manufacturing Data

Weak PMI Manufacturing data

The IHS Markit Purchasing Managers Index for the Eurozone fell to 47.6 in June showing a downturn from May, with all the big economies reporting a reading of less than 50 which is considered a positive level. In Germany a decline in orders has led to output and employment issues with the EU “Engine Room” reading 45.4, well below the reading of 60 this time last year. The issues in the Eurozone economy are slowly becoming clearer with significant concerns surrounding growth prospects and following a return to fiscal stimulus its unclear if the end is in sight. The President of the European Central Bank Mario Draghi is replaced in October however the position is yet to be appointed with some probably hesitant considering the task at hand.

Date for the rest of the week

Tomorrow will be the release of the Markit Services PMI across the Eurozone and then tomorrow it will be the turn of the Retail Sales. Both readings are expected to show the same readings for the month of June as May, however following yesterdays data there could be further bad news on the way.

If you do find yourself with an upcoming euro transfer, then make sure you’re in contact with your broker. They will be able to keep you updated for a potential opportunity for you to trade.

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