Eurozone GDP returns to growth in Q2, rises strongly by 0.4%

Sagar Dua FXStreet

According to Eurostat, Eurozone Gross Domestic Product (GDP) growth turns positive in the second quarter of this year after declining 0.2% in the previous quarter. The GDP growth data is at 0.4%, higher than estimates of 0.2%. Year-on-Year (YoY) GDP growth also remains stronger at 1% against 0.5% estimates and the previous reading of 0.3%.

Market reaction

There seems to be a muted reaction by the Euro (EUR) despite strong Eurozone GDP numbers. At press time, EUR/USD trades 0.12% lower at around 1.1453. The major currency pair rebounded from the day's low at 1.1435 after the release of the better-than-expected German Q2 GDP data release.

Economic Indicator

Gross Domestic Product s.a. (QoQ)

The Gross Domestic Product (GDP), released by Eurostat on a quarterly basis, is a measure of the total value of all goods and services produced in the Eurozone during a certain period of time. The GDP and its main aggregates are among the most significant indicators of the state of any economy. The QoQ reading compares economic activity in the reference quarter to the previous quarter. Generally, a rise in this indicator is bullish for the Euro (EUR), while a low reading is seen as bearish.

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