Consumer prices in the eurozone fell the most in 13 years, as unemployment and lower energy costs caused prices to drop by -0.6%. This exceeded estimates, which predicted a -0.4% contraction. The unemployment rate also rose to 9.4%.

Both deflation and rising unemployment are occurring as companies cut costs in the 16-nationa eurozone. Unemployment has risen nearly 2% in the last 12 months and the OECD predicts that unemployment could rise as high as 12%. The news has failed to limit euro exchange rates though if US GDP data is negative, this could drive the euro to the downside.

The current euro exchange rate is USD1.41 and GBP0.85.

The rates quoted above are interbank rates. Client rates may vary according to the volume and timing of the trade.