German Preliminary GDP expands 8.2% in Q3 vs. +7.3% expected, EUR/USD uninspired

German GDP arrives at +8.2% QoQ in Q3 vs. +7.3% expected.
Annualized German GDP stands at -4.3% in Q3 vs. -11.3% expected.
EUR/USD unmoved on upbeat German Q3 growth numbers.

Dhwani Mehta FXStreet

The German economy grew 8.2% inter-quarter in the third quarter of 2020 when compared to the expectations of +7.3% and -9.7% seen in Q2, the preliminary report published by Destatis showed on Friday.

Meanwhile, the yearly rate fell by 4.3% in Q3 against the previous reading of -11.3% and missed market expectations of -5.3% contraction.

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 the 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).

EUR/USD unfazed on data

The shared currency failed to show any reaction to the above-forecast German Q3 growth numbers, as EUR/USD traded modestly flat around 1.1670.

The spot hit a fresh daily low of 1.1661 ahead of the German data. Markets await the key Eurozone macro news, with the bloc’s Q3 GDP set to rebound while the inflation is expected to remain in the negative.

When are the Eurozone Preliminary CPIs/ GDP and how could they affect EUR/USD?

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.

EUR/USD trims gains, back below 1.1800

EUR/USD now loses some upside momentum, returning to the area below the 1.1800 support as the Greenback manages to regain some composure following the SCOTUS-led pullback earlier in the session.

GBP/USD off highs, recedes to the sub-1.3500 area

Following earlier highs north of 1.3500 the figure, GBP/USD now faces some renewed downside pressure, revisiting the 1.3490 zone as the US Dollar manages to regain some upside impulse in the latter part of the NA session on Friday.

Gold climbs to weekly tops, approaches $5,100/oz

Gold keeps the bid tone well in place at the end of the week, now hitting fresh weekly highs and retargeting the key $5,100 mark per troy ounce. The move higher in the yellow metal comes in response to ongoing geopolitical tensions in the Middle East and modest losses in the US Dollar.