Euro retreats on disappointing French and German GDP data
City Index February 14, 2013 2:45 PM
<p>The euro has retreated in forex trading as France and Germany post poor GDP data for the fourth quarter.</p>
The euro has retreated in today's (February 14th) opening trading session as France and Germany's gross domestic product (GDP) data for the fourth quarter of 2012 disappointed.
According to official statistics reports, both economies suffered higher-than-expected contraction in the final three months of last year, potentially negating recent reports that the worst of the eurozone sovereign debt crisis is over and recovery can begin.
In the region's largest economy, Germany, GDP shrank by 0.6 per cent as the country's export market weakened.
This is the deepest contraction the nation has suffered since the height of the financial crisis in 2009.
In France – which many believe to be recession-bound – the economy shrank by 0.3 per cent, however there have been recent reports indicating the country's GDP would grow in the first three months of 2013.
At 08:30 GMT, the euro had depreciated against all of its major trading partners, sliding by 0.1 per cent versus the pound to £0.864 and by 0.4 per cent against the dollar to $1.339.
Learn about the euro and forex trading at City Index.
StoneX Financial Ltd (trading as “City Index”) is an execution-only service provider. This material, whether or not it states any opinions, is for general information purposes only and it does not take into account your personal circumstances or objectives. This material has been prepared using the thoughts and opinions of the author and these may change. However, City Index does not plan to provide further updates to any material once published and it is not under any obligation to keep this material up to date. This material is short term in nature and may only relate to facts and circumstances existing at a specific time or day. Nothing in this material is (or should be considered to be) financial, investment, legal, tax or other advice and no reliance should be placed on it.
No opinion given in this material constitutes a recommendation by City Index or the author that any particular investment, security, transaction or investment strategy is suitable for any specific person. The material has not been prepared in accordance with legal requirements designed to promote the independence of investment research. Although City Index is not specifically prevented from dealing before providing this material, City Index does not seek to take advantage of the material prior to its dissemination. This material is not intended for distribution to, or use by, any person in any country or jurisdiction where such distribution or use would be contrary to local law or regulation.