GDP up by 0.6% in the Euro Area and by 0.5% in the EU

Euro area GDP rose by 0.6% , and was accompanied  by a 0.5% growth increase in  the European Union (EU)  for the first quarter of the year, according to an estimate by Eurostat.
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The figures that growth is moving steadily faster in both entities, as for the final quarter of last year, growth increased by 0.4% in the euro area, and 0.5% across the EU.

Compared with the same quarter of the previous year,  GDP rose by 1.7% in the euro area and by 1.8% in the EU, remaining stable in the euro area, with the EU rising by 0.2% year on year  from the previous quarter.

Exports accelerated by 0.4% in both the euro area and in the EU, while imports increased by 0.7% and 0.9% in the euro area and the EU respectively.

Romania celebrated the highest amount of growth of  1.6%, Cyprus followed on 0.9%, Spain, Lithuania, Austria and Slovakia all posted growth of 0.8%.

Bulgaria and Germany recorded the highest growth compared with the previous quarter, with a surge of 0.7%.

Decreases were registered in Hungary by minus 0.8%, Greece minus 0.5%, and Poland minus 0.1%, while GDP in Estonia remained stable.

German Industrial Production Increases By 0.8% in April

 Official figures in Germany have reported positive news on industrial production, as it has risen by 0.8% in April compared to March.

The latest month on month figures are a boost, as the data for March compared to February saw a decrease in industrial activity by 1.1%.

Within the industry sector, the main drivers of growth were found from a 2.2% hike in the production of capital goods.

This was followed by a 1.1% rise in energy production, as in the first quarter of this year, the economy grew by 0.7%, and increase of 0.4% from the final quarter of 2015.

There was  also growth the production of consumer goods by 0.4%, although the rate of intermediate goods remained stable.

The construction industry has seemingly suffered the most, as output fell by 0.4% compared to March.

Throughout April, production in industry excluding energy and construction was up by 1.1%.

Sterling Fights Back Against the Dollar

The UK pound has managed to stop the rot in the short term, and the GBP/USD rate is currently $1.46, upwards from the early hours of the morning GMT, when sterling was buying $1.44.

Recent opinion polls have effected the value of the pound, as the have indicated that the support to leave the EU has increased.

And the current momentum appears to be with the view that to walk away from Brussels, would be the UK’s better option.

The outcome of the referendum could now be so close it could go to the wire, today sees a live televised debate between Prime Minister David Cameron, and the anti-EU United Kingdom Independence Party leader Nigel Farage.

Monex Europe in their daily report said that Sterling managed to stem its losses, and is trading up after an extraordinary couple of minutes in the early hours of the morning, that saw sterling strengthen more than 1% in seconds.

Also, there are rumours of low liquidity or even an accidental error strewn, “fat fingered” trade are circulating in the media, and this episode is another demonstration of just how volatile G10 forex is at present.