Euro gains ground after eurozone unemployment rate dips
By Neil Dennis
11:05, 2 December 2021
The euro climbed on Thursday after the unemployment rate in the eurozone currency bloc dipped in October.
The single currency gained 0.18% to $1.1338 against the dollar and has climbed 1.3% against the greenback since hitting an 18-month low on 24 November.
Data from eurostat on Thursday showed that the rate of unemployment in the eurozone fell to 7.3% in October, from 7.4% in September, matching analysts’ forecasts. The unemployment rate for the European Union as a whole was stable at 6.7% in October.
In numerical terms, this meant that the number of people out of work in the eurozone fell by 64,000 in October, extending the decline from September’s 223,000 drop.
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“Unemployment is clearly on a downward trajectory, having fallen in each of the past six months,” said Melanie Debono, senior Europe economist at Pantheon Economics.
She added: “We look for a fall in the eurozone jobless rate to 7% at the end of 2021, smashing through March 2020’s record low of 7.1%. We then expect the rate to continue to decline, to below 6.5% over the coming years.”
The euro was also supported on Thursday by data showing soaring producer price inflation, rising to an annual rate of 5.4% in the eurozone in October, up from 2.8% in the previous month.
Price rises for energy was the biggest contributor, up 16.8%, while intermediate goods rose 1.4% and durable consumer goods added 0.5%.