Webinar: Euro Eases as Euro-Zone Data Show Strong Growth, Low Inflation
- Euro-Zone GDP growth was stronger than expected at 0.6% q/q in Q3 and the unemployment rate was lower than predicted at 8.9%.
- However, the inflation rate was also below the consensus, making it difficult for the ECB to tighten monetary policy further and weakening the Euro.
- In this webinar, DailyFX Analyst and Editor Martin Essex looked at the data before and after their release, plus their impact on interest rates and the currency.
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Euro-Zone GDP growth in the third quarter was higher than the consensus forecast by analysts, with economic growth at 0.6% quarter/quarter and 2.5% year/year, both a tenth of a percentage point above the predicted levels. The unemployment rate in September was also better than expected at 8.9% rather than 9.0%.
However, inflation in October slipped further below the European Central Bank’s target, coming in at 1.4% year/year for the headline rate and 0.9% for the core rate. That makes it difficult for the ECB to justify any further tightening of Euro-Zone monetary policy and contributed to a small dip in the Euro.
Chart: EUR/USD Five-Minute Timeframe (October 31, 2017)
--- Written by Martin Essex, Analyst and Editor
To contact Martin, email him at email@example.com
Follow Martin on Twitter @MartinSEssex
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