TRENDING:

EU Commission lowers Eurozone GDP forecast amid recession risks

In its quarterly assessment published on Monday, the European Commission downgraded its projections for the Eurozone’s economic growth for this year and the next, citing that the German economy has slipped into recession.

Additional takeaways

Sees Eurozone GDP growth at 0.8% in 2023, 1.3% in 2024, down from 1.1% and 1.6% respectively seen in May.

Expects German economy to shrink by 0.4% in 2023 against its May forecast of 0.2% growth, sees German 2024 growth at 1.1% vs. 1.4% forecast in May.

Expects France to grow 1.0% in 2023, faster than the 0.7% it forecast in May.

Expects Italy to grow 0.9% this year vs. 1.2% forecast in May.

Slashes Dutch growth forecast to 0.5% this year from 1.8% see in May, expects 1.0% in 2024 vs. 1.2% expected in May.

Sees Eurozone inflation at 5.6% in 2023 vs 5.8% forecast in May, expects 2.9% Eurozone inflation in 2024 vs. 2.8% forecast in May.

Market reaction

The quarterly forecasts fail to have any notable impact on the Euro, as EUR/USD continues to trade sideways around 1.0725, up 0.24% on the day.

Author

Dhwani Mehta

FXStreet

Residing in Mumbai (India), Dhwani is a Senior Analyst and Manager of the Asian session at FXStreet. She has over 10 years of experience in analyzing and covering the global financial markets, with specialization in Forex and commodities markets.

Markets move fast. We move first.

Orange Juice Newsletter brings you expert driven insights - not headlines. Every day on your inbox.

Editor's Picks

EUR/USD stays near 1.1600 after official ending of US government shutdown

EUR/USD moves little after six days of gains, trading around 1.1590 during the Asian hours on Thursday. The pair remains steady as the US Dollar holds ground after US President Donald Trump signed the government funding bill on Thursday, marking the official end of the record 43-day government shutdown in the United States history.

GBP/USD remains subdued below 1.3150 ahead of UK flash Q3 GDP data

GBP/USD remains subdued for the third successive session, trading around 1.3120 during the Asian hours on Thursday. Traders await the United Kingdom flash Gross Domestic Product data for the third quarter due later in the day.

Gold hits three-week top as dovish Fed bets offset US government reopening optimism

Gold reverses a modest Asian session dip and climbs to an over three-week high, around the $4,213 region, on Thursday. Investors seem convinced that the delayed US macro data will show some weakness in the economy amid a prolonged US government shutdown and prompt the US Federal Reserve (Fed) to lower borrowing costs further in December.

UK GDP set to post small rise as markets eye December rate cut

The UK’s Office for National Statistics will release the advanced prints of the Q3 Gross Domestic Product on Thursday. If the figures meet market consensus, the UK economy would have maintained its pace of expansion at 1.4% annualised, showing that momentum could have begun to stall.

US government hopes boost risk, as bond market may not prop up Starmer

As we move through the European trading session on Wednesday, there is residual optimism in the market that continues to boost risk sentiment. European indices are having another strong day, although the FTSE 100 is bucking this trend and is posting a small loss.

Hyperliquid Price Forecast: HYPE under pressure as HLP absorbs $5 million bad debt

Hyperliquid (HYPE) holds above $38 after an 8% drop so far this week, which marks the third consecutive week of losses. The retail interest for HYPE remains low as Hyperliquid’s market maker, Hyperliquid Provider (HLP), suffers a $4.9 million loss in a potential stress test.