The French economy grew by 0.3% in Q4 2013, beating expectations, according to the initial GDP release. It was expected to end 2013 with a growth rate of 0.2% in Q4 2013. For the full year of 2013, France grew by 0.3%. The euro-zone’s second largest economy suffered a contraction of 0.1% in Q3. Year over year in Q3, France also grew 0.3% according to new data. This is a small upgrade from the initial report. These are the preliminary releases, and a final figure will be published later on.
EUR/USD was stable on high ground, at around 1.3677. The pair seems to wait for the German release. After ticking a few pips higher, the pair is back to the same levels.
While both the QoQ and the YoY figures are slightly better than expected, a growth rate of 0.3% in 2013 after 0% is still quite weak and cannot be described as a “real recovery”.
France is the first country to release GDP figures today. The release of German GDP, where a growth rate of 0.3% is expected, will likely have a significant impact. See how to trade the German GDP with EUR/USD.
Later on, Italy is expected to report a return to growth of 0.1%. The all European growth rate is forecast to be 0.2%. Spain already published its GDP numbers. The fourth largest economy grew by 0.3%.
For more events, news and analysis, see the Euro $ forecast.