Skip to content
News & Analysis at your fingertips.

We use a range of cookies to give you the best possible browsing experience. By continuing to use this website, you agree to our use of cookies.
You can learn more about our cookie policy here, or by following the link at the bottom of any page on our site. See our updated Privacy Policy here.



Notifications below are based on filters which can be adjusted via Economic and Webinar Calendar pages.

Live Webinar

Live Webinar Events


Economic Calendar

Economic Calendar Events

Free Trading Guides
Please try again
More View more
Italian Economy Contracts for the 4th Consecutive Quarter

Italian Economy Contracts for the 4th Consecutive Quarter

Benjamin Spier, Technical Strategist

THE TAKEAWAY: Italian GDP falls 0.7% in 2Q, better than expected -> Austerity measures could further damage GDP-> Euro unmoved in today’s trading

Italy’s economy contracted for the fourth straight quarter in 2Q according to a preliminary estimate by the National Statistics Institute. Gross Domestic Product was down 0.7% from the previous quarter and 2.5% lower than 2Q 2011. The quarter over quarter contraction was slightly better than expectations for a second quarter of 0.8% negative growth.

The Italian government is currently implementing 20 billion Euros of budget cuts to bring Italy’s deficit within the EU limit. The austerity measures could further worsen Italy’s negative growth. PM Mario Monti has been pleading to expedite measures to fight the Euro crisis, which could include the ECB buying Italian bonds to drive down the borrowing costs of the struggling country.

Euro reversed earlier session gains against USD despite the slightly better than expected Italian GDP. EURUSD has spent the week trading within 50 points of the key 1.2400 line. The pair has traded in a downward channel since late May and could be viewed as currently retracing the rally from July’s 2-year low.

Italian_Economy_Contracts_for_the_4th_Consecutive_Quarter_body_eurusd_daily_chart.png, Italian Economy Contracts for the 4th Consecutive Quarter

“Meet the DailyFX team in Las Vegas at the annual FXCM Traders Expo, November 2-4, 2012 at the Rio All Suite Hotel & Casino. For additional information regarding the schedule, workshops and accommodations, visit the FXCM Trading Expo website.”

DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.