The EUR got an early boost, with better than expected business climate and sub-index figures delivering support. Downward revisions to GDP numbers had a muted impact on the EUR.
Economic data from the Eurozone was on the busier side this morning with GDP and business climate figures in focus this morning.
In the 1st quarter, the German economy contracted by 1.8%, quarter-on-quarter, down from a prelim 1.7%. In the 4th quarter of last year, the economy had expanded by 0.5%.
According to Destatis,
Year-on-year, the economy contracted by 3.1%.
In May, the IFO Business Climate Index increased from 96.6 to 99.2. Economists had forecast an increase to 97.8.
Optimism improved, with the Business Expectations Index rising from 99.2 to 102.9. Assessment of current conditions also improved, with the Current Assessment Index climbing from 94.2 to 95.7.
Economists had forecast increases to 101.4 and to 95.5 respectively.
According to the IFO survey,
Ahead of the numbers the EUR had fallen to a pre-stat and current day low $1.22116 before rising to a pre-stat high $1.22315.
In response to today’s stats, the EUR rose from $1.22207 to a post-stat and current day high $1.22666.
At the time of writing, the EUR was up by 0.37% to $1.22610.
Consumer confidence figures from the U.S.
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.