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According to the initial report GDP report for Q3, Germany and France both grew by 0.2%. The core countries  exceeded early expectations: the French economy was expected to remain flat for another quarter, while Germany was expected to grow by only 0.1%.

With a potential recession for both major economies, EUR/USD isn’t responding very positively, and it continues trading under 1.2750.

The unresolved issues with Greece, Spain’s wait for a bailout and the fears about the global economy also join the talk about recession.

Spain already released its Q3 GDP figures, which showed yet another quarter of contraction – 0.3%. Italy releases its initial GDP number at 9:00 GMT.

EUR/USD has been floating in a limited range, above 1.2750 and under 1.2750. It made a false break upwards yesterday, reaching 1.2778 before retreating very quickly.

For more on the euro, see the EURUSD forecast.