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Forex pairs in this Article » EUR/USD (Barcelona) - Derek Halpenny, European Head of Global Markets Research at the Bank of Tokyo Mitsubishi UFJ notes that he can’t recall a negative GDP print (GDP in Q2 -0.1%, released yesterday) being met with such enthusiasm as Spain’s yesterday – the data and the reaction to it highlights the current situation in the euro-zone.

Key Quotes

“Optimism is rising but the improvement is relative and economic conditions will still be very weak over the coming quarters.”

“In our view that means the ECB will come under increasing pressure to do more to stimulate demand after the summer break. The ECB press conference tomorrow will possibly be more about highlighting the fact that conditions are improving but the attempt at “forward guidance” has been pretty poor with the euro stronger and short-term yields higher.

“More will be required by the ECB. The only data from the eurozone today will be German and euro-zone unemployment – which will tell very different stories with periphery weakness leaving EZ unemployment at an expected 12.2% in June – a record.”
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