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German GDP stagnates, EU GDP reveals slowing growth<\/h2>\n
Germany’s first-quarter GDP data narrowly avoided a contraction as the first three months of the year posted a 0% improvement from the fourth quarter of 2022, according to Friday morning’s flash estimate . The print is significantly lower than consensus estimates for growth of less than 0.3%, which carries EU-related assets decisively.<\/p>\n
The broader euro area economy fared slightly better, but also missed estimates on both quarter-on-quarter (QoQ) and year-on-year (YoY) benchmarks. The year-on-year growth of 1.3% represents a decrease of 0.5% compared to the 4Q statistic, continuing the deceleration of growth.<\/p>\n
<\/a><\/p>\n Customize and filter live economic data using our DailyFX <\/span>economic calendar<\/span><\/p>\n The disappointing data has caused rate expectations to shift further in favor of a 25 basis point (bp) hike when the ECB’s governing council meets next week on Thursday, with an outside possibility of 50bp looking less likely . Markets currently see an 80% chance of a 25 basis point increase next week.<\/p>\n ECB interest rate<\/span> Probabilities (implied)<\/span><\/p>\n Source: Refinitiv, prepared by <\/span>Richard Snow<\/span><\/p>\n Recommended by Richard Snow\n<\/p>\n Learn how to prepare for market movement data\n<\/p>\n EUR\/USD immediately headed lower after the German data, but consolidated in the moments after the EU data scrolled across the computer screens.<\/p>\n EUR\/USD 5 minute chart<\/span><\/p>\n Source: TradingView, powered by <\/span>Richard Snow<\/span><\/p>\n The recent move lower has been spurred by weaker-than-expected growth data from Germany, along with a rare boost from the dollar as yesterday’s inflation component of first-quarter US GDP. <\/span>The print came in hotter than expected, adding more weight behind the general consensus we’ll see a 25 basis point hike next week from the FOMC.<\/p>\n The long-term uptrend remains bullish as prices remain within the ascending channel for now. Indeed, this pullback will be welcomed by EUR\/USD touches anticipating a pullback before considering a bullish continuation.<\/p>\n EUR\/USD Daily Chart<\/span><\/p>\n Source: TradingView, powered by <\/span>Richard Snow<\/span><\/p>\n The DAX index also declined after the German growth data according to the 5-minute chart below, despite a gap higher at the open. The index had already shown signs of bullish fatigue on the daily chart as it struggled to advance from a yearly high.<\/p>\n DAX 5 minute chart<\/span><\/p>\n Source: TradingView, powered by <\/span>Richard Snow<\/span><\/p>\n — Written by Richard Snow for DailyFX.com<\/span><\/p>\n Contact and follow Richard on Twitter: <\/span>@RichardSnowFX<\/span><\/a><\/p>\n element within element. Surely this is not what you wanted to do! Instead, you load your application’s JavaScript package inside the element. ![\"image2.png\"](\"https:\/\/a.c-dn.net\/b\/1se6vi\/image1.png\" "\\"\\"")
<\/a><\/p>\nEU assets fall after disappointing growth data<\/h2>\n
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