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.

GBP/USD recovers ground above 1.3350 ahead of BoE decision

GBP/USD holds the bounce above 1.3350 in the European session on Thursday. The pair's upside remains capped amid a modest US Dollar recovery. Traders turn cautious and refrain from placing fresh bets ahead of the BoE policy announcements and the US GDP release.

EUR/USD holds losses around 1.1450 despite upbeat German, EU GDP data

EUR/USD stays on the back foot around 1.1450 in the European session on Thursday as the better-than-expected German and Eurozone GDP data fails to support the Euro. The US Dollar recovers ground on renewed Mideast hostilities and the hawkish Fed message. Traders now brace for preliminary readings of the second-quarter GDP from the US.

Gold bears retain control ahead of US Q2 GDP

Gold maintains its offered tone through the first half of the European session on Thursday and seems vulnerable to following an intraday rejection near the $4,100 mark. Following Wednesday's post-FOMC downfall to a one-week low, the US Dollar (USD) regains positive traction amid escalating US-Iran tensions, weighing on the bullion ahead of the US Q2 GDP release.

Mixed signals leave XRP and XLM at crossroads

Ripple and Stellar are trading at critical technical levels on Thursday. XRP has stabilized above the psychological $1.00 support, while XLM is testing support at $0.173. Traders should be cautious as mixed derivatives metrics keep the outlook uncertain for both altcoins. Derivatives data shows mixed sentiment among traders. CoinGlass’ long-to-short ratio for XRP reads 1.02 on Thursday.

US GDP expected to grow at 2.1% in Q2, unshaken by Iran conflict

The United States (US) Bureau of Economic Analysis (BEA) is set to publish its preliminary estimate of second-quarter Gross Domestic Product (GDP) on Thursday, with analysts expecting the data to show annualised growth at a solid 2.1%, a modest cooling from the 2.1% expansion recorded in the previous quarter.

US Dollar mid-year outlook: Exceptional currency, exceptional risks?

The US Dollar enters the second half of 2026 in a markedly different position from a year ago. The King currency has recovered, reflecting persistent US inflation, changing expectations for Fed policy, geopolitical tensions and renewed demand for defensive assets.