Euro-zone GDP rises 0.6% in Q2, as expected – EUR/USD

Growth in the euro-zone remains strong. The 0.6% growth rate that was seen in Q1 was replicated in Q2, as expected. Year over year, the growth rate stands at 2.1%.

It was no big surprise after both France and Spain posted robust rates of growth. France, the second largest economy, grew by 0.5% q/q and Spain, the fourth-largest, enjoyed a rapid clip of 0.9%. In addition, the unemployment  rate in the 19-country currency area dropped to 9.1%. Everything is going in the right direction.

EUR/USD remains strong above 1.18, trading at around 1.1815. The peak so far has been 1.1844. Most of the rise in euro/dollar can be attributed to the fall of the US dollar. Trouble in Washington has weighed heavily on the greenback, even as data looked OK. The US economy grew at an annualized pace of 2.6%, which is equivalent to 0.6% or 0.7% q/q, a similar pace to that of the

The US economy grew at an annualized pace of 2.6%, which is equivalent to 0.6% or 0.7% q/q, a similar pace to that of the euro-zone. Other figures such as durable goods orders also looked good.

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Here are the recent moves in the pair, as shown in the 30-minute chart: