Forex News: Euro-Zone Economy Enters Technical Recession
THE TAKEAWAY: Euro-zone GDP declines 0.1% in Q3 -> Inflation confirmed at 2.5% -> Euro trading steady
Euro-zone gross domestic product declined for the second straight quarter in Q3, signaling a technical recession for the 17-nation economy. The economy contracted 0.1% according to preliminary estimate, which follows last month’s 0.2% drop in economic output and matched expectations. The Euro-zone GDP was 0.6% lower than Q3 of 2011, according to Eurostat.
Euro-zone inflation for October was also reported at 2.5%, thereby confirming a flash estimate and dropping slightly from September’s 2.6% annual inflation. Consumer prices were 0.2% higher from September to October.
The Euro-zone economy has been struggling with its debt crisis, and leaders have been actively working on preventing Greece from defaulting, while economies like Spain and Italy continue to work to avoid asking for a bailout from the ESM.
The GDP results were as expected and therefore did not have a significant effect on Euro trading in currency markets. EURUSD is currently trading above 1.2750, and resistance could be provided by a former support at 1.2824.
EURUSD 15-minute: November 15, 2012
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