Eurozone consumer prices fall in November. Unemployment rate edges up. Euro falls in Forex Trading. | CountingPips Forex Blog

November 28, 2008 - Forex Economic News

Eurozone consumer prices fall in November. Unemployment rate edges up. Euro falls in Forex Trading.

Eurozone consumer prices dropped in November according to a flash estimate report released by Eurostat today. The eurozone consumer price index, a gauge of inflation, declined by 1.1 percent in November to register 2.1 percent. The fall in consumer prices was the highest on record since the beginning of the euro and follows the October cpi reading of 3.2 percent. November's cpi reading surpassed market forecasts which were predicting a 2.4 percent cpi level.

Declining fuel costs have driven price inflation downwards worldwide after record high oil prices had pushed inflation to historical levels in May, June and July. The lower inflation rate Euro falls in Forex Trading raises speculation that the European Central Bank will reduce its interest rate by more than forecast next week on December 4th. The ECB is forecasted to cut its rate by 50 basis points from 3.25 percent to 2.75 percent. The ECB had last reduced its interest by 50 basis points in November and also by 50 basis points in October in a coordinated move with central banks around the globe after credit crisis turmoil.

Euro unemployment reaches 7.7 percent.

Eurozone unemployment edged up in October according to a separate release by Eurostat today. The eurozone unemployment rate rose to 7.7 percent in October after registering 7.6 percent in September. On an annual basis, the unemployment rate has risen by 0.4 percent as the October 2007 rate registered 7.3 percent. The amount of unemployed workers increased by 225,000 in October from September. On an annual basis, the number of unemployed workers has increased by 810,000 from October 2007.

The EU27 unemployment rate edged up to 7.1 percent in October from 7.0 percent in September. The amount of unemployed workers increased by 290,000 in the EU27 for October. On an annual basis, the number of unemployed workers has increased by 709,000 from October 2007.

Euro falls verses the US Dollar in Forex Trading.

The euro has fallen against the U.S. dollar in forex trading today to trade under 1.2700 dollars per euro. The EUR/USD is trading at 1.2695 in the afternoon of the U.S. trading session(12:07pm ET) and down from its 1.2893 open. The euro has also fallen in trading today against the pound sterling from 0.8371 earlier today to 0.8268. The European currency has also declined today against the Japanese yen as the EUR/JPY trades at 121.33 and down from 123.04. Verses the Swiss franc the euro has declined to trading at 1.5436 from 1.5480 at the open earlier today.

EUR/USD Chart - The Euro falling vs. the US dollar in forex trading today and trading right at its 21 day moving average(1 Daily Chart).

Today's Forex Chart

tags: euro consumer prices, unemployment, forex trading, euro, fx

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