EUROZONE GDP AND EUR: PRICES, NEWS AND ANALYSIS:
- The Eurozone economy expanded by just 0.2% quarter/quarter in the final three months of 2018 and by a mere 1.2% year/year.
- The poor data will do little to prop up EURUSD, which has been weakened by a stronger US Dollar.
WEAK EUROZONE Q4 GDP
Economic growth in the Eurozone was a miserly 0.2% quarter/quarter in the final three months of 2018, leaving year/year GDP growth at just 1.2%, according to the latest data.
The figures followed news that the German economy failed to expand at all in the fourth quarter, while Italy fell into a technical recession. Now, it seems likely that growth in the Eurozone this year could be as low as 1%.
In the meantime, the Euro could well weaken further given the political problems in Spain and negative German government bond (Bund) yields right up to nine-year-maturity debt. Here’s how EURUSD reacted to the latest numbers:
EURUSD PRICE CHART, FIVE-MINUTE TIMEFRAME (FEBRUARY 13/14, 2019)
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