Foreign Exchange Market Update

December 2, 2025

Eurozone

Euro traded at 1.1602 against USD at 9:00 AM PST

The euro area’s unemployment rate remained unchanged in October. The unemployment rate remained unchanged at 6.4% in October. However, this was down from 6.3% in the same period last year. The number of unemployed decreased by 13,000 from September to 11.033 million in October. Compared to last year, unemployment increased by 308,000.

At the same time, the youth unemployment rate came in at 14.8% October, the same as in September. The youth unemployment dropped by 10,000 from the previous month. The overall unemployment rate in the EU27 was steady at 6% in October, and the youth jobless rate was stable at 15.2%. 12/02/2025 - 07:19:00 (RTTNews)

Eurozone inflation rose in November and moved away from the European Central Bank's (ECB) target. Inflation rose to 2.2% in November. The rate remained slightly above the ECB's 2% target.

Excluding volatile energy, food, alcohol, and tobacco prices, core inflation held steady at 2.4%. Looking at the main components of inflation, services showed the highest annual rate of 3.5%, followed by food, alcohol, and tobacco, which registered a stable growth of 2.5%. Non-energy industrial goods prices moved up 0.6%, while energy prices dropped 0.5%.

Last month, the ECB had retained its key interest rates for a third straight policy session. The deposit rate was last lowered by a quarter-point to the current level of 2.0% in June. The governing council of the ECB will meet next in Frankfurt on December 17 and 18. 12/02/2025 - 06:13:00 (RTTNews)

Spain's unemployment declined more in November. Unemployment decreased by 18,805 from the previous month in November. Compared to last year, registered unemployment decreased by 161,057 to 2.42 million. This was the lowest figure for the month of November since 2007.

The number of unemployed in the service sector fell by 13,013, and by 1,552 in industry. The agriculture sector reported a decrease of 1,332, and construction showed a drop of 881. Unemployment among young people aged below 25 years fell by 5,476 in November compared to the previous month. 12/02/2025 - 03:59:00 (RTTNews)

United Kingdom (U.K.) Nationwide House Prices Rise

British Pounds traded at 1.3192 against USD at 9:00 AM PST

U.K. house prices logged a faster growth in November despite budget uncertainty. House prices grew 1.8% yearly in November, slower than the 2.4% increase seen in October.

Month-on-month, house prices were up 0.3%, slightly faster than October's 0.2% increase. The housing market has remained stable in recent months, with house prices rising at a modest pace and the number of mortgages approved for house purchases maintained at similar levels to those prevailing before the pandemic.

Amid subdued consumer confidence and signs of weakening in the labor market, the current performance suggests resilience, especially since mortgage rates are more than double the level they were before Covid struck and house prices are close to all-time highs. Further, the changes to property taxes announced in the Budget are unlikely to have a significant impact on the housing market.

The high-value council tax surcharge, which is not being introduced until April 2028, will apply to less than 1% of properties in England and around 3% in London. However, the increase in taxes on income from properties may weigh on the supply of new rental properties coming onto the market. As a result, there is a potential for upward pressure on rental growth.

Housing affordability is likely to improve modestly if income growth continues to outpace house price growth. Borrowing costs are also likely to moderate a little further if the interest rate is lowered again in the coming quarters. Lower interest rates and improving affordability will support buyer demand, especially since household balance sheets are strong. The ratio of household debt to disposable income is at its lowest for two decades. 12/02/2025 - 03:14:00 (RTTNews)

Japan Consumer Confidence Strengthens in November

Japan's consumer sentiment improved further in November to the highest level in more than one year. The seasonally adjusted consumer confidence index rose to 37.1 in November from 35.8 in October. Moreover, a similar reading was last seen in July 2024.

The index for overall livelihood increased by 1.3 points to 36, and the sub-index for employment improved to 41.1 from 40. The index for willingness to buy durable goods rose to 30.7 from 28.7, and the index reflecting income growth climbed to 40.7 from 40.1. 12/02/2025 - 01:39:00 (RTTNews)