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The euro-zone’s fourth largest economy grows more than expected: 0.7% q/q and 2% year over year, significantly better than expected. Prices dropped 1.4% y/y close to 1.5% predicted.

If Spain is to be taken as an example, is the fall in prices good for the economy? EUR/USD doesn’t rise to much.

Spanish was expected to report a growth rate of 0.6% q/q in the last quarter of 2014 after 0.5% in Q3 and 1.9% y/y after 1.6% beforehand. The annual level of inflation carried expectations for a drop of 1.5% for January, worse than 1.1% in December.

EUR/USD traded steadily in range, around 1.1335.

Earlier, German retail sales came out at +0.2% for December or 4% y/y – a mixed result. Yesterday’s German  CPI data showed a drop of 0.5% in prices, worse than expected and justifying the ECB’s QE program Germany opposed to.

France reported a rise of 1.5% in consumer spending, beating expectations.

The most important release in Europe is the all European  flash CPI estimate. Yet another month of deflation is expected for the old continent.

In the US, the main event is the first release of Q4 GDP, which is predicted to show slower growth in Q4.

See how to trade the US GDP with EURUSD

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