Hello koala king and folks.
Good day to you.
Eurozone annual inflation in August compared to same month the previous year remained unchanged but the number of unemployed in this area increased. The unemployment rate in Germany is 7% and the average unemployment rate in the Euro Zone rose to 10%. However inflation remained at 2.5% for the seventeen-nation Euro Zone.
The rate of inflation targeted by the central banks in Europe is less than 2% and analysts expect the European Central Bank to combat inflation by raising interest rates for the third time this year from 1.5% to 1.75%.
The August unemployment figures in America which represents the country's labor market is depressed. America's unemployment rate is unchanged in August compared to last month at 9.1%. Graph of unemployment in America during the past six months shows that despite the White House promise to reduce unemployment, the opposite may be happening. An employment market downturn could increase the risk of an economic crisis.
Recent economic indicators of the Euro Zone were disappointing and the economic outlook is not bright. Signs of an economic boom has faded again.
It will be a busy week. The IMF will report on Greece, the European Central Bank and Bank of England will release its monetary policy and the G7 finance ministers are meeting in France.
From a technical perspective:
As you can see in the above picture, EUR/USD in time frame H4 after the formation of a triangle, the triangle has broken down. While the currency pair is below 1.43, probably the EUR/USD will decline.
Have a great weekend.
Masoud.
Masoud.
Masoud is a businessman and a Senior Forex Koala. Connect with him at our page on Facebook.
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