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Germany reported a quarterly growth rate of 0.3%, as expected. The locomotive of the euro-zone enjoyed solid growth of 0.7% in Q2. Year on year, a growth rate of 0.7% was expected. Year over year, Germany grew by 1.1%.

EUR/USD was trading quite steadily just under 1.3470 before the publication, very marginally affected by the disappointing French disappointment.

Earlier, France disappointed and reported a contraction of 0.1%, below expectations of growth at the same scale. Later on, we will have the release of Italy’s GDP, which is expected to show contraction, and the publication for the whole euro-zone. Spain already reported a marginal growth rate of 0.1%.

As Germany and France are the continent’s largest economies, expectations for the euro-zone GDP are adjusted after these publications. The euro-zone exited its recession in Q2, but most commentators didn’t see the continent as coming out of the woods.

For more, see the EUR/USD forecast.