Germany, the euro-zone’s locomotive, saw its economic output rise by 0.6%, slightly below 0.7% expected. This was countered by an upwards revision to the data for Q1: 0.7% against 0.6% published beforehand. Year over year, growth hit 2.1% against 1.9% expected but the previous figure was revised down.
The positives were domestic demand as well as government investment and private consumption. Foreign trade was the weaker spot: import growth exceeded export growth.
Germany’s GDP data feeds into the euro-zone’s figures that are published tomorrow. A growth rate of 0.6% q/q is expected for the 19-country currency bloc.
EUR/USD was already on the back foot as the greenback began the week with a comeback, recovering from the falls late last week.
The pair reached a low of 1.1751 and currently trades at 1.1760. Support awaits at 1.1710, followed by 1.1620. Resistance is at 1.18, with a more significant hurdle at 1.1870.
More: Is EUR/USD still overbought?
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