020 7898 0500It was fairly quiet in Europe as the French and Italian markets were closed for a bank holiday. However, we did see the single currency weaken initially as German GDP missed expectation by posting a reading of 0.6% against 0.7%. That said, this is still a positive reading and the annualised figure reported the fastest rate of growth since 2014. The single currency gained some momentum in the afternoon as the International Monetary Fund upgraded their 2018-2020 growth outlook to 6.4% from 6.0%.
Today, there is some downside risk that quarterly growth could miss. Meanwhile, the annualised figure will probably echo the same tone and the yearly figure from Germany. This is likely due to the recent pickup we have seen in the region, particularly from Spain.
