Eurozone Confidence And Unemployment Data In Focus

Eurozone Confidence And Unemployment Data In Focus

Uncertainty is still dominating financial markets with growing anticipation for interest rates decisions from the European Central Bank and Bank of England before the weekend, but for now traders await top-notch confidence and unemployment data from the euro area.

Though concerns remains the main sentiment in the 17-nation currency bloc, but the jittery tone has actually eased since the ECB announced it will purchase unlimited quantities of bonds to push down borrowing costs further in a bid to support the fragile economic recovery.

European confidence started to pick up as well after Spain formally asked for a bilout for its ailing banks, whereas fears eased that Congress and White House will fail to avoid the deadline for a 'fiscal cliff' of spending cuts and tax hikes which could have taken effect a week ago.

Consumer confidence in the debt-troubled euro area, however, remains negative despite these positive developments in the world`s largest economies. It seems that households and families are still pessimistic about their perspectives and business prospects in December.

Traders will track the latest updates about euro-area confidence at the end of 2012. Consumer Confidence index is expected to stay unchanged at -26.6, Business climate indicator has probably ticked higher to -1.09 from -1.19, and economic confidence higher at 86.2 from 85.7.

The Austerity mania that swept the troubled eurozone economies has stripped households and families out of their optimistic sentiments actually as the unemployment rate remained way too elevated in many European countries, such as Spain and Greece, above 25 percent.

In the euro area, the jobless rate probably rose to all-time high of 11.8 percent in December, from 11.7 percent a month ago. In Italy, the unemployment rate is aslo seen unchanged in December, at 11.1 percent. High unemployment remains the major challenge against confidence!

Pre-market trading is mainly calm Tuesday. The single currency was little changed against its U.S. counterpart, down 0.12 percent at $1.3107. The pound was also down 0.22 percent at $1.6085. The Greenback was 0.11 percent higher against its Japanese counterpart, around 87.36 yen