The Eurozone Unemployment Rate Fell to Its Lowest Levels Since 2011

The unemployment rate in the Eurozone has decreased to its lowest since 2011 despite concerns about the global economy.

Eurostat, the EU's statistical agency, said the jobless rate in the 19 country eurozone had fallen to 10.4% from 10.5% in November.

This means 16.75 million people are jobless, down 49,000 from November.

In the full 28 member European Union the unemployment rate was unchanged at 9% in December.

Among the member states Greece and Spain continue to have the highest jobless total at over 20%.

The Czech Republic and Germany had the lowest rate, both at 4.5%.

Although the German authorities, using a different calculation method, released a domestic unemployment rate of 6.3% for December earlier on Tuesday.

The eurozone's total jobless figure is better than analysts expected because of fears surrounding the slowdown in China and volatility in financial markets.

Jennifer McKeown, Capital Economics analyst, welcomed the improvement, but said a slowing global economy could reverse any progress.

"We still think that the European Central Bank has a lot more work to do," she added.

Howard Archer, economist at IHS Global Insight, said he expected continued modest growth, with unemployment falling to below 10% by the end of the year if current trends continued.

ECB President Mario Draghi has already indicated another stimulus package could be unveiled as soon as next month.

GBP/USD Is Climbing

It seems that the GBP/USD move to the downside is over for now. The pair reached the support at 1.4078 and could not break below that level, forming a spinning top and then a doji candlesticks on the weekly time-frame above the aforementioned support. Unsurprisingly, the pair then moved to the upside and broke above the resistance at 1.4350. I expect a further move to the upside, towards the next level of resistance at 1.4500 – 1.4550. That said, the bearish trend likely is not completely exhausted yet and I think it will probably continue once this correction ends.

Will EUR/GBP Continue Rising?

After EUR/GBP broke above the resistance at 0.7510 its rally continued until the pair reached the resistance at 0.7755. It failed to break above that level and retraced back to 0.7520, which had now become a level of support. While in my opinion the bullish trend is not over yet, there are two possible scenarios here. The pair will either break below the support at 0.7520 and continue falling until it reaches the next support at 0.7400, or it break above the resistance at 0.7755 and continue climbing towards 0.7880.