Yet the euro skyrocketed today against the dollar, and even gained against the commodity currencies. Obviously the market couldn't care less.
Headlines trading can be deceptive. In the article, the details reveal: 1) The Unemployment increase was less than expected. The smaller-than-expected unemployment rate probably resulted from various state programs to preserve jobs through such means as subsidizing part-time shifts or training programs. 2) Inflation in the euro area had moved much further into negative territory. There's no immediate inflation fear. 3) The lower-than-expected unemployment, combined with a significant fall in prices, could mean more purchasing power for consumers. âFalling prices will provide a welcome boost to real incomesâ. Hence the Euro Rally. This is good news for the Euro.