Morning Forex Fundamental: EUR

Morning Forex Fundamental: EUR

'Given that we've seen unemployment levels slip back a little in countries like Spain recently there is a chance of a drop, but given seasonality factors any move lower could well be temporary in nature as the tourist season comes to an end' - Michael Hewson, senior market analyst at CMC Markets

Despite the overall economic improvement in the 17-nation economy, the labour market still remains a major concern for the policymakers as the overall unemployment rate remained unchanged at all-time high in July. Figures from the Eurostat showed the jobless rate stood at 12.1% during July, however, the number of people out of work fell slightly, reaching 19.23 million, 15,000 less than a month earlier. Nevertheless, it is the second straight monthly fall, raising to hopes the labour market will soon start to recover as well. In the wider European Union, the jobless rate also remained unchanged at 11%. The situation in the labour market and economic revival are the key political issues for next month's German elections, as Chancellor Angela Merkel is seeking a third term in office.

In a separate report on Friday the Federal Statistical Office said German retail sales advanced 2.3% in the last month compared with July a year ago. On an annual basis, retail sales climbed higher 4.2%, up from a 1.4% decline in the previous month. In addition to that the turnover in retail trade ticked up 1.4% in nominal terms, while in real terms it was 0.1% smaller.