Economic Growth in Germany Beats Expectations, Supporting the EUR

It’s a quieter economic calendar through the European session, with German GDP numbers in focus.

In the 2^nd quarter, the German economy grew by 1.6%, quarter-on-quarter, recovering from 1^st quarter 1.8% contraction. Economists had forecast growth of 1.5%.

According to Destatis, the economy grew by 9.8%, year-on-year, versus a forecasted 9.6%. In the 1^st quarter, the economy had contracted by 3.3%.

Market Impact

Ahead of today’s GDP figures, the EUR had risen to a pre-stat and current day high $1.17486 before falling to a pre-stat low $1.17343.

In response to today’s stats, the EUR fell to a low $1.17396 before climbing to a high $1.17468.

At the time of writing, the EUR was flat at to $1.17457.

Next Up

New home sales figures from the U.S, which will provide very little distraction for the markets. Sentiment towards the Jackson Hole Symposium and the Delta variant will likely remain the key risk drivers later in the day.