An influx of data coming out from the old continent has not materially changed the picture for EUR/USD. The pair continues hovering above the 1.09 level but attempts a lift-off. It remains well off the lows of 1.0860, but will it challenge 1.0960? 1.0924 is the current high.
France, the second-largest economy in the euro-area, printed disappointed figures: GDP growth is only 0.2% in Q3 2016, lower than estimates of 0.3% and slow also in absolute terms. This comes on top of a contraction seen back in Q2, worth 0.1%. So 0.2% is far from being a convincing rebound.
Also inflation numbers are not that great in France: prices stalled month over month, lower than 0.2% predicted. Year over year, the country saw prices falling 0.2%.
In Spain, the euro-zone’s fourth-largest economy, inflation actually hit the highest in 3 years, reaching 0.7% y/y. Spaniards have seen deep deflation at times, but now things are changing rapidly.
Spain also continues seeing strong growth: 0.7% according to the initial read, as expected and only slightly below the 0.8% level seen in Q3. 0.7% q/q is around 3% y/y. In the past 10 months, the country has been without a government, but a new one is set to be sworn in over the weekend. Will things get worse now?
Later today, we will get the German inflation numbers and the dominant event is the US GDP. See how to trade the US GDP with EUR/USD.
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