German Preliminary GDP contracts 1.7% in Q1 vs. -1.5% expected, EUR/USD battles 1.21

German GDP arrives at -1.7% QoQ in Q1 vs. -1.5% expected.
Annualized German GDP stands at -3.0% in Q1 vs. -3.2% expected.
EUR/USD unmoved on mixed German Q1 growth numbers.

Dhwani Mehta FXStreet

The German economy shrank 1.7% inter-quarter in the first quarter of 2021 when compared to the expectations of -1.5% and +0.3% seen in Q4, the preliminary report published by Destatis showed on Friday.

Meanwhile, the annualized GDP rate fell by 3% in Q1 against the previous reading of -3.7% and beat market expectations of -3.2% contraction.

Separately, the Italian economy contracted by 0.4% QoQ in Q1 but bettered estimates of -0.5% and -1.8% previous.

EUR/USD unfazed on data

EUR/USD remains little changed on mixed German growth numbers, as the sentiment remains tepid, which helps the US dollar bounce.

The major was last seen trading at 1.2100, down 0.15% on the day.

About German Prelim GDP

The Gross Domestic Product released by the Statistisches Bundesamt Deutschland is a measure of the total value of all goods and services produced by Germany. The GDP is considered as a broad measure of German economic activity and health. A high reading or a better-than-expected number 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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