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The flash estimate for the euro-zone’s GDP printed a drop of 0.2% in economic output, as expected. Expectations rose a bit after both Germany and France posted better than expected results.

However, Germany’s ZEW economic sentiment fell to -25.5 points. Estimates were for a very minor change from last month’s -19.4 points.

The all-European ZEW figure improved from -22.3 to -21.2 points, but this was worse than a predicted improvement to -19.1 points. Note that the negative numbers represent pessimism.

In addition, industrial output dropped by 0.6%, a little worse than a drop of 0.5% that was predicted.

EUR/USD is sliding to 1.2360, after already enjoying higher ground. The strong German growth and the fact that France avoided contraction helped the common currency. Also the news that no delay is expected in the German constitutional court’s ruling about the ESM helped the pair.

For more on the euro, see the EUR/USD prediction.