According to the initial release, Germany grew by 0.7% in Q2 2013. The locomotive’s economy was expected to grow by 0.6%, after growing by a mere 0.1% in the first quarter and suffering a big fall of 0.7% in Q4 2012. The year on year growth rate is also better than expected: +0.9% against 0.3% predicted.
EUR/USD traded just above 1.3260 before the release, enjoying the positive French GDP numbers, and it now moving higher, though hesitating at 1.3280.
France reported a growth rate of 0.5% in Q2 2013, the highest since Q1 2013. It also marked the country’s exit from a 2-quarter recession. Italy and Spain are both still in recession in Q2, but their economies squeezed less than beforehand.
At 9:00 GMT, the euro-zone will release its initial GDP estimate (Flash) for Q2. Expectations stood on +0.2%, but after these important releases from core countries, the real market expectations are now elevated.
For more on the euro, see the EURUSD forecast.
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