High level of unemployment in Euro zone is likely to ensure further easing from ECB

While inflation edged lower, Euro area unemployment ticked up. Latest estimate shows that unemployment rate in August rose to 11% from 10.9% in July.

I have long been argued that high level of unemployment remains the greatest hurdle the area is facing and both policymakers and European Central banks will have to do everything possible to bring the bloc's unemployment level closer to normal levels. If not rise of Euro skeptics, situations like Greece will keep on haunting the region.

ECB will likely to lose its credibility and relevance in public perception if unemployment level remains high (even though it's not its mandate) at a time when inflation is way below its target zone of close to 2% (current level -0.1%).

So it's just a matter of time before the doves in ECB governing council overcomes the hawks and go ahead with further policy actions.

Euro is currently trading at 1.122 against Dollar.