Eurozone Preliminary GDP contracts by 0.6% QoQ in Q1 vs. -0.8% expected

Dhwani Mehta FXStreet

The Eurozone economy contracted 0.6% on quarter in the three months to March of 2021, beating -0.8% expected and -0.7% prior, the first estimate showed on Friday.

On an annualized basis, the bloc’s GDP rate dropped by 1.8% in Q1 vs. -4.9% booked in the final quarter of 2020 while beating -2% expectations.

Separately, Eurozone's unemployment rate arrived at 8.1% in March when compared to February’s 8.3%.

FX implications

The euro ignores the upbeat Eurozone growth and jobless rate data, as EUR/USD flirts with daily lows of 1.2095, down 018% on the day.

About Eurozone Preliminary GDP

The Gross Domestic Product released by 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).

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.

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