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.
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