- German GDP arrives at -10.1% QoQ in Q2 vs. -9.0% expected.
- Annualized German GDP stands at -11.7% in Q2 vs. -10.9% expected.
- EUR/USD unmoved on the dismal German growth numbers.
According to the preliminary report published by Destatis on Thursday, the German economy contracted 10.1% inter-quarter in the second quarter of 2020 when compared to the expectations of -9.0% and -2.0% seen in Q1.
Meanwhile, the yearly rate plummeted by 11.7% in Q2 against the previous reading of -1.9% and missed market expectations of -10.9% contraction.
Separately, the Unemployment Rate in the Euro area’s economic powerhouse came in at 6.4% in July vs. 6.5% expected and 6.4% last. The Unemployment Change for July stood at -18K vs. +43K expectations.
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
The shared currency showed little reaction to the downbeat German growth numbers, as EUR/USD kept its recovery mode intact around 1.1760.
The spot hit a daily low of 1.1746 ahead of the German data, now shedding 0.26% on the day. The focus shifts to the US Q2 GDP.
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