A data deluge from the Eurozone led the EUR back to sub-$1.21 levels before finding support. GDP numbers from Germany were aligned with the recent downward revision to growth forecasts.
It’s been a particularly busy day on the Eurozone economic calendar. Following a relatively busy Asian economic calendar, the French, German, and the Eurozone economies were in focus.
From France, consumer spending, inflation, and 1st quarter GDP figures were in focus.
German and Eurozone GDP numbers for the 1st quarter also drew attention alongside prelim Eurozone inflation figures for April.
In March, consumer spending fell by 1.1% reversing a 0.3% rise from February. Economists had forecast a 0.4% rise.
According to Insee.Fr,
Inflationary pressures picked up in April, according to prelim figures. The annual rate of inflation accelerated from 1.1% to 1.3%.
According to Insee.Fr,
While consumption figures disappointed at the end of the 1st quarter, GDP numbers came in ahead of forecasts.
The French economy expanded by 0.4% in the 1st quarter, coming in ahead of a forecasted 0.1% growth. In the 4th quarter, the economy had contracted by 1.4%.
According to Insee.Fr,
In the 1st quarter, the German economy contracted by 1.7%, which was worse than a forecasted 1.5% contraction. The German economy had expanded by a modest 0.3% in the 4th quarter.
Year-on-year, the economy contracted by 3.3% in the 1st quarter. The economy had contracted by 2.7% in the final quarter of last year. Economists had forecast a contraction of 3.6%.
According to Destatis,
For the Eurozone, inflationary pressures continued to pick up, with the annual rate of inflation accelerating from 1.3% to 1.6% in April.
According to Eurostat,
In the 1st quarter, the Eurozone economy contracted by 0.6%, quarter-on-quarter, and by 1.8% compared with Q1 2020.
Economists had forecast a quarterly contraction of 0.8% and a year-on-year contraction of 2.0%.
In the 4th quarter, the economy had contracted by 0.7% quarter-on-quarter and by 4.9% year-on-year.
According to Eurostat,
While the Eurozone economy contracted once more in the 1st quarter, the unemployment rate eased from 8.2% to 8.1%.
Ahead of today’s data, the EUR had struck an early pre-stat and current day high $1.21267 before hitting reverse.
Through the release of today’s stats, the EUR fell to a current day low $1.20944, with economic indicators favoring the Dollar.
At the time of writing, the EUR was down by 0.22% to $1.20952.
Personal spending and inflation figures from the U.S are amongst key stats. Chicago PMI and finalized consumer sentiment numbers for April are also due out late in the European session.
With over 20 years of experience in the finance industry, Bob has been managing regional teams across Europe and Asia and focusing on analytics across both corporate and financial institutions. Currently he is covering developments relating to the financial markets, including currencies, commodities, alternative asset classes, and global equities.