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Europe’s largest economy grew by 0.3% in Q2 according to the initial estimate. Predictions were for growth of 0.2%. So, Germany joins France in posting better than expected growth numbers.

EUR/USD traded at around 1.2360 before the publication, but is now edging lower. Update: after the initial drop, the pair is now on the rise once again, getting closer to yesterday’s peak.

Germany enjoyed strong and surprising growth of 0.5% in Q1. This saved the whole euro-zone from officially entering a recession, as it brought the overall economic output to the same level as in Q4. This time, German growth is probably not enough.

The GDP figure for the whole euro-zone will be published at 8:00 GMT.

Earlier, France reported no change in the size of its economy in Q2. This was better than an estimated contraction of 0.1% that was expected for Europe’s second largest economy.

Spain and Italy already published their data and it’s much worse: Spain’s economy squeezed by 0.4%, and Italy’s fell by 0.7% in Q2. Both countries are in a deep recession.

For more on the euro, see the EURUSD prediction.