THE TAKEAWAY: German GDP rises 0.7% in Q2, meets estimate -> Exports rise 2.2% -> Euro trading unchanged
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The rise in German gross domestic product returned to a previous two year high, according to the German Federal Statistical Office’s final estimate of economic growth.
German GDP rose 0.7% (seasonally adjusted) in the second quarter, which met an earlier estimate and was improved from the unchanged economic growth seen in the first quarter. The economy expanded 0.9% (non-seasonally adjusted) from the second quarter of 2012.
German exports rose 2.2% in the second quarter, up from the 0.7% decline in Q1, while imports also rose 2% in Q2. German government spending rose 0.6% in the second quarter, up from 0.1% in Q1, while private consumption rose 0.5% in the second quarter, up from 0.2% in the previous quarter.
The stronger German GDP was predicted by the Bundesbank, but the central bank also said that the German economy will slow in the summer. For the year, the Bundesbank lowered its growth forecast for 2013 to 0.3% in June. The German manufacturing and services PMI’s for August showed an increase in sector activity, according to yesterday’s release.
The final estimate of the German GDP met a previous estimate and therefore did not significantly move the Euro in Forex markets; EUR/USD is still trading around 1.3350 at the time of this writing. A 6-month high recently set at 1.3451 may provide resistance here, and a broken resistance line around 1.3180 may provide support for EUR/USD.
EURUSD Daily: August 23, 2013
Chart created by Benjamin Spier using Marketscope 2.0
-- Written by Benjamin Spier, DailyFX Research. Feedback can be sent to firstname.lastname@example.org .