- German GDP (QoQ) (2Q P): -0.2% Actual Vs -0.1% Estimated; 0.8% Prior.
- German GDP WDA (YoY) (2Q P): 1.2% Actual Vs 1.4% Estimated; 2.3% Prior.
- EUR/USD Hits A Fresh Session Low As Germany 2Q GDP Misses Estimates.
Want to trade with proprietary strategies developed by FXCM? Find out how here.
The German Gross Domestic Product (GDP) for the second-quarter contracted 0.2 percent and missed estimates that called for a 0.1 percent contraction. This is compared to a print of 0.8 percent expansion from the first-quarter. Moreover, the lagging indicator showed a year-on-year GDP at 1.2 percent versus 2.3 percent year-on-year reading in the first-quarter. It missed market expectations of 1.4 percent. The region’s powerhouse failed to do the heavy lifting and such an outcome may boost ECB stimulus expansion bets, weighing the Euro says DailyFX Currency Strategist Ilya Spivak.
Before the data, EUR/USD fell mildly on the backdrop of a report that showed the second largest economy in the Eurozone, French economic growth, unchanged for the second-quarter. It missed market forecast of 0.1 percent and the currency pair continued to trade firmly below the critical 1.3400 level. Immediately after the release of the German GDP figures, the Euro plunged against the US Dollar to hit a fresh session low of 1.3350.
Looking ahead, the Eurozone GDP and CPI figures will take center stage at 09:00 GMT, today. Traders will be watching closely at the Eurozone GDP figures as it’s the most comprehensive measure of economic output and provides key insight to the overall economy. DailyFX Chief Currency Strategist John Kicklighter mentions the possibility of a lift in the Eurozone yields if growth starts to waver due to capital flight out of the region, which will bode ill for the Euro. See John’s Trading Video explaining how the GDP release can impact the Euro.
For the forex traders that respect technical analysis, Ilya Spivak mentions near-term support at 1.3345 (23.6% Fib Exp.) and near-term resistance at 1.3419 (23.6% Fib Ret.). He is short EUR/USD in line with the long-term fundamental outlook and says an upswing will be treated as an opportunity to add to the position. Meanwhile according to DailyFX Speculative Sentiment Index, the ratio of long to short positions in the EUR/USD stands at 1.59 as 61% of traders are long.
EUR/USD 5 Minute Chart
Daily Chart - Created Using FXCM Marketscope 2.0, Volume Indicator Available Here
New to FX? START HERE!
Edward Hyon, DailyFX Research Team
Keep up to date on event risk with DailyFX Calendar
ForexAmid the rising economic power of India, the talks of making the Indian currency fully convertible are gaining momentum. We look at the pros and cons.
Forex FundamentalsAs the world's second largest economy, China's challenge to America’s dominance includes a push to make the yuan (RMB), the world’s reserve currency. Whether it can do that now is unclear.
EconomicsOne particular barrier to trade that has received much attention of late and caused delays in negotiations of the TPP is exchange-rate manipulation, by which a country artificially devalues its ...
ForexBreaking news moves forex markets. Here are the top U.S. sites for tracking forex news.
InvestingAccess to financial information has grown with the expansion of digital news. Bloomberg and Thomson Reuters lead the pack, claiming a majority of the business information market.
EconomicsSouth Korea is the latest country to cut interest rates in an attempt to stimulate economic growth.
Forex EducationPeer-to-peer (P2P) currency exchange networks offer a viable and cheaper alternative for buying and selling currencies.
ForexHere is a simple breakdown of how to open an offshore forex account for US-based users, including legal requirements.
EntrepreneurshipA brief overview of the top apps that help forex traders with on time information, charts and more.
Investing BasicsVirtual currency is probably here to stay, but what about Bitcoin specifically? Does it have a first-to-market advantage? What are the risks involved?
- No results found.