Euro Little Changed as German Economy Continues Moderate Growth

Talking Points:

• Germany’s 3Q QoQ GDP expanded a seasonally-adjusted 0.3%, as expected
• 3Q year-on-year GDP expanded a seasonally-adjusted 1.7%
• Market awaits Eurozone’s GDP later today for further data

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According to preliminary estimates released today by the German Federal Statistics Office, Germany’s Gross Domestic Product (GDP) grew a seasonally-adjusted 0.3 percent in the third quarter of 2015, as was expected by economists, versus the prior quarter in which the economy grew 0.4 percent. The year-on-year change in GDP showed a slight acceleration and was up to 1.8% (1.7% when calendar-adjusted), above the prior reading of 1.6 percent, which signaled that the German economy continued to grow, albeit at a modest pace.

Looking into the report, the German stats office said domestic demand was a key component contributing to economic growth, with the final consumption expenditure of both households and government rising. Interestingly, downward effect on growth came from foreign trade with imports markedly larger than exports, which comes in line with market concerns of a slowdown from China and emerging markets.

With the report coming largely in line with expectations, and more decisive risk events later the day, the Euro was little changed versus the US Dollar.