Euro returns gains after rising on marginal GDP growth
Ken Odeluga November 14, 2014 5:01 PM
<p> The preliminary estimate of third-quarter Gross Domestic Product by Europe’s statistics office, Eurostat, showed the economy of the 18 countries sharing the euro expanded […]</p>
The preliminary estimate of third-quarter Gross Domestic Product by Europe’s statistics office, Eurostat, showed the economy of the 18 countries sharing the euro expanded 0.2% quarter-on-quarter in the July-September period after a 0.1% rise in the previous three months.
Year-on-year, Eurozone growth was 0.8% in the third quarter, the same as in the second quarter, against market expectations of a 0.7% rise.
Earlier in the morning, Europe’s biggest economy Germany, released data showing growth of 0.1%, in line with expectations but still better than some economists’ forecasts suggesting another quarter of negative growth.
The Eurozone’s second-biggest economy, France grew 0.3% versus 0.2% expected.
Overall, these marginally-to-somewhat-better-than-expected economic signs that at least the region’s slowdown is not deteriorating at an alarming pace, gave a fillip to sentiment on the euro.
However, as can be seen, the euro is already returning the morning’s gains, to resume to its main task of awaiting further details about the European Central Bank’s promise to fire its bazooka once again—ultimately meaning a new Targeted Long-Term Refinancing Operation.
The last ECB decision of the year will be announced on Thursday 4th December.
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.