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In August jobless rate in eurozone remains at 10.1%, unchanged from July. The rate appears to be lower than prior estimates. As survey figures show, 15.87m people are seeking jobs in 16-nation area. Jobless rate in Ireland rose from 13.8% to 13.9% in August. According to various polls, about 60% of the nation want Prime Minister Brian Cowen to resign.

Unemployment rate in Germany, the Europe`s first economy, declined to 6.8%, however Spain`s joblessness surged to 20.5%. EU officials reiterated that unemployment crisis in the region may be overcome only by joint cooperation.

A separate report showed that manufacturing in the UK, a so called purchasing managers' index (PMI), dropped to 53.4 from 53.7 in August. The British economy increased by 1.2% in the second quarter of the year, however, economists expect UK`s economic growth to stall in Q3.

According to a separate report, business investment in the country rose 0.7% in the period between April and June as compared to the first quarter. Overall volume of business investment jumped by 1.9%. The consumer output rose 9.5%, the ONS reports. But the output in services is revised down to 0.6% from prior estimates of 0.9%, but the number of financial operations is constantly growing.

Housing sector news add to fears about sustained economic growth as latest data showed delivered that banks granted the lowest number of mortgages aimed at home purchases since April 2009 in August.

Q3 financial service activity in the United Kingdom surged at the record pace in last two years. However, the companies are not so optimistic as they were in summer. According to another report, UK household finances shrank as people remain concerned about job security, budget expenses cuts and peaking prices. Household consumer confidence remains subdued. In September the correspondent monthly household-finance index surged to 40.2 mark as compared to 37.9 reading in August. However, the index is still below an average 50 level. This reading means that the economy has not completely recovered from recession.

A separate report delivered the data that the prices for new homes in the UK remained unchanged. Hometrack's research showed that prices for houses dropped 0.4% in September as compared to August. The reading is 1% higher than a year before, which shows the lowest annual rise since February.

The source: The Wall Street Journal

In the Forex currency market the last Monday of summer is set to be a boring day with low volatility as Great Britain observes Summer Bank Holiday. “Low volatility” term may today be applicable to all currency pairs except USD/JPY after the Bank of Japan announced it would increase its lending program by 10 trillion yen. So, the analysts anticipate that the Bank`s movement will boost the Japanese yen lower versus the dollar. It is believed that USD/JPY will rise to 85.00 level and stay there.

The total volume of futures on currency pairs is now several times lower than in common work days. Only at the beginning of the US trading session volume of trades rose. However, if we glance at EUR/USD currency pair, we`ll notice some decline, and GBP/USD is still moving up at a slow pace. In other words, the correction is interrupted. It looks like traders have abandoned the British Pound.

In the second quarter of 2010 rent premise fee turned out to be the highest in Brussels among European cities, reports Jones Lang LaSalle. On annual basis office fees rose 17 per cent up to 310 euro per square meter. According to the report, Moscow was a runner up as prices for renting prestigious offices surged 14.3 per cent to 653 eur per square meter. London West Side took the bronze with its 13.3 per cent increase (up to 1118 eur per square meter).

Office rent fees slid the most in Saint-Petersburg as monthly office rent dropped 28.6 percent to 408 eur. Real estate fell in Dublin by 22.2 per cent to 377 eur. In Athens prices fell by 11.7 per cent hittinh 318 level.

In May CB Richard Ellis agency reported that Moscow was on the fifth place among 176 cities by rent price for office realty. At that point, a premise in the prestigious district was at $1346 as Russian rouble remains stable on Forex market.

London`s West End was ranked at the first place as here price for renting office premises is up to $1969 per square meter. Hong kong with its rate of $1649 was ranked second. Inner Central in Tokyo took the third place. In Inner Central you may rent a meter of an office premise just for $1549. Mumbai appeared to be fourth with its $1353 per square meter.

Since December 2009 the Euro has faced a lot of difficulties in Forex currency market. After the single European currency topped out in December at 1, 52 level versus the Dollar, it directed straightly to its four-year bottom at 1,18. Now many analysts question themselves whether the Euro-zone is capable to get up and perform well to pave the way for recovery of Euro.

To determine the prospect of future rise first we need to find out the reasons of such a decline. Analysts enumerate several of them, including Greece full of debt. Such countries as Spain, Portugal, Italy, and Ireland faced the same problems. Huge external debt made Euro drop versus other currencies on Forex market. Investors did not believe that recovery could take short time. They also feared that Greek problems could expand overseas.

However, at this point some alerts show that the Euro-zone countries become capable to get rid of their problems. An outstanding financial aid was given to Greece by IMF and EU to eliminate further drop. It seems now that the agreement has been reached and the tension looks subdued. We predict that in the near future the EUR/USD currency pair is capable to hit 1,32 level till the end of the year.

Some positive signs for GBP have already emerged. The Bank of England will likely be the first one to lift rates among major financial institutions.

Yesterday the UK Office for National Statistics announced its retail sales report for May. According to official figures, the retail sales in UK increased by 0.6% from April. The data in higher by 2.2% than the result for May 2009. The figure exceeds all prior forecasts. The report says that sales of household sales hiked by 1.7%, and increase in food sales accounts for 1%. Market experts explain the hike in British retail sales by FIFA World Cup in South Africa.

Ahead of the World Cup sales of televisions and food have significantly increased as many England fans tend to watch football games at home.

Retail sales figure for April was revised down by Office for National Statistics. It says retail sales stalled in April after initially reported 0.3% growth.

Economists at IHS Global Insight believe that consumer spending, as price moving economic indicator, is likely to make an important contribution to Q2 GDP growth.

Food shops witnessed sales rise by 1.4%, while growth in non-food sector appeared to be at 5.4%. The largest increase (8.5%) was in non-specialised shops, while textile and clothing was up by 6.6%. The data shows the recession in UK is now over.