Slightly better than expected growth in the euro-zone: 0.3% q/q and 0.9% y/y. The Greek economy actually squeezed in Q4, and y/y growth in the debt struck country rose by only 1.7% instead of 2.2% predicted.
The euro-zone was expected to report a growth rate of 0.2% in the preliminary number for Q4, but that was before the superb German release of a 0.7% growth rate.
EUR/USD traded steadily at a high range around 1.1430.
France reported a growth rate of 0.1% q/q, in line with expectations, but only 0.2% y/y. Italy reported no change in output: a flat 0%. A few weeks ago, Spain enjoyed a 0.6% growth rate.
The focus is still on Greece, but upbeat data certainly helps the common currency.
Regarding Greece, there has been no progress in the first Eurogroup meeting on Wednesday: the sides could not even publish a joint statement.
A meeting between Greek PM Alexis Tsipras and German Chancellor Angela Merkel was described as “friendly” and there was speculation about progress.
The critical meeting is on Monday: the finance ministers meet again on Monday. This comes after the state elections in Hamburg. Merkel might show more flexibility after these elections and after scoring 3 big achievements.
Later, we have consumer confidence numbers in the US. This comes after a big disappointment that sent the dollar way down.
Will EUR/USD continue higher?
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