Euro returns gains after rising on marginal GDP growth

The preliminary estimate of third-quarter Gross Domestic Product by Europe’s statistics office, Eurostat, showed the economy of the 18 countries sharing the euro expanded 0.2% quarter-on-quarter in the July-September period after a 0.1% rise in the previous three months.

Year-on-year, Eurozone growth was 0.8% in the third quarter, the same as in the second quarter, against market expectations of a 0.7% rise.

Earlier in the morning, Europe’s biggest economy Germany, released data showing growth of 0.1%, in line with expectations but still better than some economists’ forecasts suggesting another quarter of negative growth.

The Eurozone’s second-biggest economy, France grew 0.3% versus 0.2% expected.

Overall, these marginally-to-somewhat-better-than-expected economic signs that at least the region’s slowdown is not deteriorating at an alarming pace, gave a fillip to sentiment on the euro.

However, as can be seen, the euro is already returning the morning’s gains, to resume to its main task of awaiting further details about the European Central Bank’s promise to fire its bazooka once again—ultimately meaning a new Targeted Long-Term Refinancing Operation.

The last ECB decision of the year will be announced on Thursday 4th December.

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