The unemployment rate in the Euro-Zone increased to 7.5% from a revised reading of 7.4% in July, which suggests that the economy may fall into a recession by the end of the year. Economic activity has certainly deteriorated over the past month as the downturn in the services and manufacturing sector accelerates, signaling that growth within the 15 European nations will remain subdued for the rest of the year. Meanwhile, the slowdown in the global economy paired with the spillover effects of the US financial crisis has certainly taken a toll on the Euro-Zone, and conditions may only get worse as Germany, Europe’s largest economy, is on the brink of a recession. Amid the dour outlook, the euro-dollar (EURUSD) brushed off the news to hold to hold its overnight gains, and has bounced higher to break above 1.4150.