The euro-zone enjoyed accelerated growth in Q1 2017:0.5% q/q as expected. Year over year, the economy grew by 1.7%, also as predicted. PPI fell short of expectations with -0.3% m/m but +3.9% y/y.
EUR/USD remains stable.
The euro-zone was expected to report an accelerated growth rate of 0.5% in Q1 2017. In the last quarter of 2016, the economy grew by 0.4%. The initial report at the time showed 0.5%, but Germany’s figures eventually sent it down.
EUR/USD was trading steadily around 1.0915 ahead of the release.
In the last quarter of 2016, the economy grew by 0.4%. The initial report at the time showed 0.5%, but Germany’s figures eventually sent it down. All in all, growth is accelerating in the euro-zone.
In the last ECB meeting, President Mario Draghi expressed more satisfaction and fewer worries about growth but still lacked confidence about inflation. We since learned that inflation is on the rise, with core inflation reaching the highest since 2013.
French elections shadow
The data is published ahead of the last presidential debate in France. Emmanuel Macron and Marine Le Pen will face off on television later today. The elections are held on Sunday. Macron currently leads the polls by 60% to 40% for Le Pen. Markets are
Markets are relatively calm ahead of the second round. Polls were amazingly correct in the first round. However, complacency among potential Macron voters and the last minute swing cannot be ruled out.
