Euro Extends Gains Following Better-Than-Expected German GDP Data
- French and German 4Q GDP 0.3% and 0.4% Q/Q vs. 0.2% and 0.3% Expected
- Euro Pushing Higher, Testing Above 1.37 vs. US Dollar After German GDP Print
- Continued Euro Gains May Be Ahead if Composite Eurozone 4Q GDP Outperforms
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The French economy grew in the last quarter and for the second time in 2013 by 0.3 percent, beating expectations calling for a 0.2 percent increase. The German economy followed suit, growing by 0.4 percentand beating estimates pointing to a 0.3 percent increase. Though GDP is a backward looking indicator the metric is suggesting signs of a pick-up in overall output and could bode well for the Euro-zone economy.
The Euro extended yesterday's gains against the US Dollar following the set of better-than-expected French and German data. The fourth-quarter Eurozone GDP figure is on tap later in the day. The region-wide composite gauge is expected to show the year-on-year growth rate accelerated to 0.4 percent, marking the first positive reading in two years. Such an outcome may further boost the single currency amid ebbing ECB easing expectations after the central bank said that it will scrutinize incoming data before introducing further stimuluslast week.
EUR/USD 1-Minute Chart. February 13, 2014
Charted created by David Maycotte using Marketscope 2.0.
-- Written by David Maycotte, DailyFX Research Team. Questions, comments or concerns can be sent to firstname.lastname@example.org.
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