The locomotive of the euro-zone is slowing down. Germany’s economy grew by only 0.2% in Q3 2016, below the early expectations. This will weigh on the overall euro-area growth released later on. Weaker trade has been one of the negative points pulling growth downwards. Year over year, the economy grew by 1.7%, lower than 1.8% predicted.
EUR/USD ticks below 1.0750 but does not collapse. The full reaction will be seen later on, when markets open across the continent.
The German economy was expected to grow by 0.3% in Q3 2016 after 0.4% in Q2. Here is our preview: trading the German GDP with EUR/USD.
EUR/USD traded steadily around 1.0750, off the lows at support around 1.0710.
The common currency has surrendered to the might of the US dollar in recent days. Expectations for fiscal stimulus have spurred the greenback, despite doubts that Republicans will approve enlarging the debt. Here’s more: EUR/USD falls to 2016 lows – why and what’s next
Here is the euro/USD chart:
Also note the US retail sales released later on today. This is a key report for the US economy.
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