Economic Data from the Eurozone Provides Early EUR Comfort

It was a busy morning on the Eurozone economic calendar. Key stats included 2^nd estimate GDP numbers for the Eurozone and ZEW Economic Sentiment figures for Germany and the Eurozone. With market sensitivity to inflation, however, finalized January inflation figures from Spain also provided direction ahead of today’s key stats.

ZEW Economic Sentiment Delivers Mixed Messages

For February, Germany’s ZEW Economic Sentiment Index rose from 51.7 to 54.3, supported by a modest improvement in sentiment towards current conditions. By contrast, the Eurozone’s ZEW Economic Sentiment Index slipped from 49.4 to 48.6.

Eurozone Economy Grows by 0.3% in Q4

Year-on-year, the Eurozone economy expanded by 4.6%, which was in line with 1^st estimate figures. The economy had grown by 3.9% in the previous quarter. Quarter-on-quarter, the economy grew by 0.3%, which was also in line with prelim figures. In the previous quarter, the economy had expanded by 2.2%. The numbers were in line with the ECB’s sentiment on growth at the turn of the year.

Other stats on the Day

Trade data was also negative. In December, the Eurozone’s trade deficit widened from €1.5bn to €3.6bn.

Inflation figures from Spain were EUR positive, however. According to finalized numbers. Spain’s annual rate of inflation softened from 6.5% to 6.1%. This was up from a prelim 6.0%, however.

Geopolitics Key

While the stats did draw attention, easing market tensions over Russia and the Ukraine were key for the EUR.

Market Impact

Ahead of today’s forecasts, the EUR had fallen to a pre-release and current day low $1.12985 before finding support.

In response to today’s stats, the EUR fell to a post-release low $1.13094 before rising to a post-stat and current day high $1.3538.

At the time of writing, the EUR was up by 0.33% to $1.13439.

Next Up

U.S wholesale inflation and NY Empire State Manufacturing data. Expect the wholesale inflation figures to draw the greatest interest.