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Posted July 1, 2025 at 10:51 am
Monthly changes in the European unemployment rate have rarely exceeded 0.2%. In fact, going back to 2004, moves in excess of 0.2% were isolated to significant economic problems. Time periods near the Great Financial Crisis, the ensuing Euro Debt Crisis and the COVID-19 pandemic saw increases north of 0.2% in only a few months. Meanwhile, this Wednesday’s release is expected to reflect an unchanged 6.2% for May. In light of decent labor conditions and historical tendencies, a climb to 6.4% is highly unlikely and the “No” at 6.3% appears undervalued to me at just $0.80. Furthermore, out of the 30 forecasters surveyed in a Reuters poll, no one penciled in a jump of that magnitude, which is what’s required for “Team No” to lose here.



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