Is the Eurozone out of recession?

The euro had a distinctly mediocre day yesterday despite some positive data coming from the region. German Economic Sentiment data was better than expected as investors in Europe’s largest economy seem hopeful of a change in momentum. The single currency did however weaken against sterling and the US dollar as the effect of positive economic sentiment data was muffled by Eurozone Industrial Production data revealing less growth than predicted and in response to positive news emanating from the UK and USA. This morning we are likely to see a degree of volatility as the seventeen-nation currency reacts to the release of second quarter flash GDP data. After six consecutive quarters of contraction, investors are hopeful that the figures will finally reveal a turning of the tides in the form of some long-awaited growth. Whilst estimates vary, median predictions centre around 0.2% growth so any variance either side of this is likely to cause movement. Call your trader now to see how the euro responds to the data.