Robust growth continues in Europe: 0.6% q/q as expected. This comes on top of 0.7% in Q3. Year over year, the 19-country currency bloc saw a growth rate of 2.7%. The data for Q3 was revised to the upside, adding to the oomph. This is the first estimate that does include Germany, the largest economy. We may see changes later on.
EUR/USD holds onto its gains and extends the recovery above 1.24. It is important to note that EUR/USD also takes advantage of the fresh US dollar weakness. Is the greenback comeback over?
The euro-zone was expected to report a growth rate of 0.6% q/q in the last quarter of 2018. Year over year, a rate of 2.7% was on the cards.
EUR/USD was already moving higher, recovering and topping 1.24.
Spain saw economic growth of 0.7% q/q and France had 0.6%. Both came out as expected and in absolute terms, represent robust growth. Initial German CPI numbers point to higher inflation y/y and this is also contributing to the strength in the euro.
More: Is EUR/USD heading to 1.27? Two models point that way