French Economy Flat in Q2

According to the initial release, the economy of France remained unchanged in Q2 2012. Early expectations stood on a squeeze of -0.1%, so this result is better than expected.

EUR/USD traded under the 1.2360 line prior to the publication and is ticking up now.

Update: Also Germany exceeded expectations and reported growth of 0.3% now.   This will probably not be enough to counter other countries’ recessions.

In Q1, Europe’s second largest economy stalled after two consecutive quarters of slow growth. So now in 2012, we have so far 2 quarters of 0%. This isn’t impressive, to say the least.

Germany will release its Q2 GDP numbers shortly, and is expected to report growth in Q2. Italy and Spain already reported an ongoing recession in Q2.

France also reported that consumer prices fell by 0.4%,in July,  more than 0.2% that was expected.

The common currency recovered from worrying news yesterday about another potential lawsuit that could in Germany that could further delay the ruling on the ESM bailout fund.