Eurozone Prelim GDP meets estimates with -12.1% QoQ in Q2, EUR/USD stays above 1.18

  • Eurozone GDP (QoQ) (Q2):  -12.1% actual vs -12.1% expected.
  • Bloc’s GDP (YoY) (Q2): -15.0% actual vs. -15.0% expected.
  • EUR/USD sustains the bounce above 1.1800 on the data.

The Eurozone economic output shrank in the second quarter, the latest figures released by Eurostat confirmed on Friday.

The bloc’s GDP contracted 12.1% QoQ in Q2, matching the expectation of -12.1% and -12.1% reported in the first estimate. The annualized figure arrived at -15.0% vs. -15.0% expected and -15.0% last.

Meanwhile, the number of employed persons in the Eurozone decreased by 2.8% QoQ in Q2 vs. -1.7% expected and -0.2% previous.

The seasonally adjusted Trade Balance for the bloc stood at EUR21.2 billion in June vs. EUR8.0 recorded in May.

more to come ...

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 shows little reaction to the mixed Eurozone economic releases, as EUR/USD sustains the bounce from 1.1791 lows.

At the press time, EUR/USD trades modestly flat at 1.1814. All eyes remain on the US Retail Sales and Consumer Sentiment data for fresh trading incentives.

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