Eurozone GDP Growth Slows, Euro Still Under Downward Pressure
Eurozone GDP and EUR: prices, news and analysis:
- The Eurozone economy expanded by just 0.2% quarter/quarter in the final three months of 2018 and by a mere 1.2% year/year.
- The poor data will do little to prop up EURUSD, which has been weakened by a stronger US Dollar.
Weak Eurozone Q4 GDP
Economic growth in the Eurozone was a miserly 0.2% quarter/quarter in the final three months of 2018, leaving year/year GDP growth at just 1.2%, according to the latest data.
The figures followed news that the German economy failed to expand at all in the fourth quarter, while Italy fell into a technical recession. Now, it seems likely that growth in the Eurozone this year could be as low as 1%.
In the meantime, the Euro could well weaken further given the political problems in Spain and negative German government bond (Bund) yields right up to nine-year-maturity debt. Here’s how EURUSD reacted to the latest numbers:
EURUSD Price Chart, Five-Minute Timeframe (February 13/14, 2019)
Chart by IG (You can click on it for a larger image)
In the recording above you can listen to my webinar on the data and the markets ahead of and after the figures were released.
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--- Written by Martin Essex, Analyst and Editor
DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.