Euro Down More Than 1 Percent On Inflation And Unemployment

The euro tumbled after inflation and unemployment data provided further reason for the European Central Bank to loosen its policy even further. The common currency traded at $1.3555 at 4:52 GMT on Friday morning after slipping more than 1 percent on Thursday.

reported that eurozone unemployment remained at 12.2 in September, a record high. The data indicated that although the bloc has seen a modest recovery, the effects have yet to trickle down to the region's job market. Germany, Austria and Luxembourg all boast the lowest unemployment rate, with Austria's the lowest at 4.9 percent. As in previous months Greece and Spain struggle with the highest number of unemployed; both countries have unemployment figures above 25 percent. Even more troubling was the number of unemployed young people, a group some have dubbed ‘the lost generation'. 24.1 percent of Europeans under 25 were without jobs, compared to 23.7 percent in August. The numbers add up to an additional 8,000 young people out of work over the past two months. Also weighing on the common currency was inflation data which fell to its lowest level in almost four years in October. Eurozone inflation was down to 0.7 percent in October, which has put further pressure on the ECB to act. The bank meets next week on Thursday, at which time some believe the ECB board could decide to ease further. The dollar gained momentum after Wednesday's Federal Reserve meeting stoked speculation that the bank could taper sooner rather than later. The bank omitted a phrase about “tightening fiscal conditions” being a risk to the bank's outlook, which many interpreted as a sign that the Fed could begin tapering in early 2014.