The euro continues to lose ground against the US dollar and hold its own against sterling. The Eurozone unemployment rate came out 0.1% better than expected at 11.5% instead of 11.6%. However, this is still high, and with inflation showing little signs of increasing, the pressure is on the European Central Bank (ECB) to try and achieve stronger stimulus measures to speed up the Eurozone recovery. Today we have a Purchasing Managers’ Index (PMI) from the Eurozone which is expected to be at similar levels to the previous month.
The euro finds itself in a difficult position as the Eurozone seems to find it difficult to get their economy growing at a sufficient rate to make a significant dent in unemployment and get inflation on an upward curve. The ECB has its work cut out and any further actions they take are likely to undermine the euro.