No surprises in the second-largest economy in the eurozone: a growth rate of 0.4% quarter over quarter in the final quarter of 2016. Also the year over year numbers did not come as a surprise.
EUR/USD hugs the 0.4% level.
France was expected to report a growth rate of 0.4% in Q4 2016, double the 0.2% rate seen in Q3. The economy has been growing at a sluggish pace for quite some time.
EUR/USD was trading above the 1.07 level. stabilized and stopped. Weak inflation figures from Germany held the common currency down. Later today we will get the preliminary inflation figures for the whole continent.
On the other hand, the fallout from Trump’s Muslim ban has been massive, to say the least. The move to ban entries to the US from 7 predominantly Muslim countries (where Trump has no personal business interests) has caused chaos in US airports, a mess in US courts and criticism all around.
Markets have also reacted with falls in stock markets and a rush towards the safe-haven Japanese yen. The most recent development is that President Trump fired his interim Attorney General Sally Yates after she refused to defend Trump’s Muslim ban, seeing it as unlawful.
The two forces have kept EUR/USD stable.