Europe’s largest economy grew more than expected: 0.4% q/q in Q2 2016 against 0.3% expected. While this is slower than in Q1, it is still a higher growth rate than many other developed economies.
Year over year, the numbers also beat expectations with 1.8% against 1.4% predicted. In addition, this came on top of an upwards revision for Q1: 1.9% instead of 1.6%. It’s all good news.
EUR/USD ticks a bit higher within the range. It could continue higher once markets open.
Final Consumer Price Index was published at the same time and it was confirmed at 0.3% m/m and 0.4% y/y. The WPI is up 0.2% m/m and down 1.4% y/y.
Later today we get key data from the US: retail sales and also consumer confidence. See how to trade the US consumer confidence with EUR/USD.
Germany was expected to report a GDP growth rate of 0.3% in Q2 2016, down from +0.7% in Q1.
EUR/USD traded steadily around 1.1140
