Eurozone Prelim GDP shrinks 3.8% QoQ in Q1 vs. 3.8% exp, EUR/USD stays above 1.08
|- Eurozone GDP (QoQ) (Q1): -3.8% actual vs -3.8% expected.
- Bloc’s GDP (YoY) (Q1): -3.2% actual vs. -3.3% expected.
- EUR/USD unmoved on data, as the contraction was already priced-in.
After Germany entered a recession in the first quarter of 2020, the Eurozone economic output also shrank in the first quarter, the latest figures released by Eurostat showed on Friday.
The bloc’s quarterly reading came in at -3.8%, matching the expectation of -3.8% and -3.8% reported in Q1. The annualized figure arrived at -3.2% vs. -3.3% expected and -3.3% last.
Meanwhile, the number of employed persons in the Eurozone decreased by 0.2% QoQ in Q1 vs. -0.4% expected and +0.3% previous. Meanwhile, the seasonally adjusted Trade Balance for the bloc stood at EUR23.5 billion in March vs. EUR25.6 recorded in February.
About Eurozone GDP
The Gross Domestic Product released by the Eurostat is a measure of the total value of all goods and services produced by the Eurozone. The GDP is considered as a broad measure of the Eurozone economic activity and health. Usually, a rising trend has a positive effect on the EUR, while a falling trend is seen as negative (or bearish).
FX implications
The shared currency ignores the Eurozone macro news as well, as EUR/USD keeps its range trade intact near 1.0810 region. The mixed German growth figures were also shrugged-off by the EUR markets.
At the press time, EUR/USD trades modestly flat after hitting a daily high of 1.0820. All eyes remain on the US Retail Sales for April for fresh direction.
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