Euro-Zone GDP in Line With Expectations, Greece Back in Recession

Talking Points:

• Euro-Zone’s 4Q year-on-year GDP expanded 1.5%, as expected
• Euro-Zone’s 4Q QoQ GDP expanded 0.3%, as expected
• Greece back in recession after QoQ GDP came at -0.6%

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The Euro traded sideways to slightly lower versus other major currencies (at the time this report was written) after today’s Euro-Zone GDP figures came in line with expectations. According to preliminary estimates by Eurostat, Euro-Zone’s Gross Domestic Product (GDP) grew a seasonally adjusted 0.3% in Q4 of 2015, as the prior and expected figure. The year-on-year change in GDP was 1.5%, below the prior 1.6%, but in line with expectations as well.

Germany, which is the largest economy in the Euro-Zone, showed a 0.3% QoQ expansion in figures released earlier today. Perhaps most notable was the -0.6% seasonally adjusted Q4 print from Greece, that signaled the country slipped back into recession. Yet with ‘risk trends’ the major driving factor in the markets right now, and the figures coming generally in line with expectations, the Euro kept trading with the prevailing market theme.

DailyFX Sr. Technical Strategist Jamie Saettele noted that the EUR/USD faces a big test starting from the mid- 1.1400s.