German Preliminary GDP contracts 1.7% in Q1 vs. -1.5% expected, EUR/USD battles 1.21
|- German GDP arrives at -1.7% QoQ in Q1 vs. -1.5% expected.
- Annualized German GDP stands at -3.0% in Q1 vs. -3.2% expected.
- EUR/USD unmoved on mixed German Q1 growth numbers.
The German economy shrank 1.7% inter-quarter in the first quarter of 2021 when compared to the expectations of -1.5% and +0.3% seen in Q4, the preliminary report published by Destatis showed on Friday.
Meanwhile, the annualized GDP rate fell by 3% in Q1 against the previous reading of -3.7% and beat market expectations of -3.2% contraction.
Separately, the Italian economy contracted by 0.4% QoQ in Q1 but bettered estimates of -0.5% and -1.8% previous.
EUR/USD unfazed on data
EUR/USD remains little changed on mixed German growth numbers, as the sentiment remains tepid, which helps the US dollar bounce.
The major was last seen trading at 1.2100, down 0.15% on the day.
About German Prelim GDP
The Gross Domestic Product released by the Statistisches Bundesamt Deutschland is a measure of the total value of all goods and services produced by Germany. The GDP is considered as a broad measure of German economic activity and health. A high reading or a better-than-expected number has a positive effect on the EUR, while a falling trend is seen as negative (or bearish).
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