by Brian Miller
The pound has held close to 1.33 versus the euro today, close to a 1-week low, yet still just 2 cents from its highest since January 25th 2008. Sterling has stood firm, because of mixed economic news from the Eurozone today.
Euro supported, as Eurozone joblessness falls
On the plus side, Eurozone joblessness unexpectedly fell -0.1% to 11.4% in December, according to official statistics agency Eurostat. This is the least since August 2012, and suggests that the currency bloc's job market is slowly but surely gaining traction. 157,000 fewer people were unemployed last month. This therefore lifted the euro.
Euro weakens, as Eurozone deflation deepens
Yet on the negative side, prices slid -0.6% on the continent in December, indicating that the Eurozone continues to slide further into deflation. This -0.6% equals the sharpest drop in the currency bloc's history, back in July 2009, when the Eurozone was reeling from the financial crisis. This suggests that Europe may yet succumb to a prolonged period of falling prices and economic stagnation, weakening the euro.
