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Euro-zone GDP confirmed to have expanded 0.3% in Q2
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Markit predicts further economic growth in Q3
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Euro trading steady following the release
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Euro-zone Gross Domestic Product was confirmed to have grown 0.3% in the second quarter, according to Eurostat’s second estimate. The 0.3% rise in GDP ended six quarters of economic recession and set a new 2-year high in quarterly expansion. However, the annual decline in GDP was revised lower to -0.5% in Q2 from a previous estimate of an annual 0.7% economic contraction.
Household consumption expanded by 0.2% in the second quarter, beating expectations for 0.1% and up from the 0.2% decline in consumption in Q1. Also, retail sales only rose by 0.1% in July, according to a release today.
Euro traders have been looking for a rebound in the Euro-zone economy following the debt crisis, and an earlier release of the PMI’s for August suggested that economic expansion may continue into the third quarter. ECB President Draghi said in June that he expects the Euro-zone to return to growth by the end of the year, but the ECB predicted a 0.6% decline in GDP in 2013.
However, the Euro did not significantly react to the updated GDP release. EUR/USD may again see resistance at 1.3193, by the 38.2% retracement of the rally from the pair’s all-time low to the all-time high. The key 1.3000 key level may provide support.
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EURUSD Daily: September 4, 2013
Chart created by Benjamin Spier using Marketscope 2.0
-- Written by Benjamin Spier, DailyFX Research. Feedback can be sent to bbspier@fxcm.com .
DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.
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