Thanks to French growth and Germany’s escape of recession, the euro-zone grows more than expected in Q3: 0.2% q/q. This includes an exit of Greece from its seemingly endless recession. In addition to the 0.2% growth rate in Q3, Q2 was revised up from flat to +0.1%.
Year over year, the economy grew 0.8% and Q2 was revised up to 0.8%. Euro-zone inflation was confirmed at 0.4% for headline CPI and +0.7% for core CPI.
EUR/USD is a bit higher.
The euro-zone was expected to confirm inflation at 0.4% for headline CPI and 0.7% for core CPI in October, yet revisions are not uncommon. Preliminary GDP data for Q3 was expected to stand at 0.1%, and no surprises were on the cards after the continent’s biggest countries had already reported their numbers.
EUR/USD traded around 1.2455 towards the publication.
Earlier, Germany reported a growth rate of 0.1%, as expected, and avoided an official recession. Together with some upwards revisions, Germany seems to be OK despite Russian sanctions. But does this mean less stimulus and more austerity? This could eventually backfire on Europe.
France reported a growth rate of 0.3%, better than expected, and Italy continues muddling in its recession, with another quarter of contraction at -0.1%.
More: EURUSD Price Squeeze – Looking to Catch Bearish Breakouts
We later get some interesting data from the US. This includes retail sales which are predicted to recover after falling last time, and then we have another look at the consumer via the sentiment indicator from the University of Michigan.
See how to trade US consumer sentiment with EURUSD.
