The Spanish economy grew by a strong 0.6% in Q2, better than 0.5% expected and 0.4% in Q1. Year on year, the growth rate is 1.2%, better than 1.1% expected. However, inflation is weak: prices fell by 0.3%, significantly below 0.2% expected and 0.1% beforehand.
Update: EUR/USD is below 1.34.
EUR/USDÂ manages to hold on to 1.34. Break or bounce? The question remains open as the pair gets even closer to the line.
In Germany, the various states have begun releasing inflation data towards the all-German release at 12:00 GMT. Saxony printed an annual rate of 0.8% in July in comparison with 0.9% in June. This could of a lower overall level of inflation, as expected.
It is a very busy day in data related to the pair: German CPI, US ADP NFP, US GDP and the FOMC Statement are all set to shake euro/dollar.
