Spain and France look good – EUR/USD to recover?

The Spanish economy grew by 0.7% as expected. Year over year, there is a minor miss: 3.1% instead of 3.2% expected, but this is still quite an impressive growth from the fourth-largest economy in the euro-zone.

EUR/USD still suffers from the ongoing greenback comeback and trades around 1.2340. It is important to note that other currencies are also succumbing to USD pressure, with GBP/USD slipping under 1.40.

Earlier, France reported a quarterly growth rate of 0.6% q/q, as expected. Year over year, this is a growth rate of 2.4%, a bit higher than 2.3% that was forecast. In addition, the second-largest economy saw its highest growth rate since 2011.

But when the dollar takes a breather, there is room for the euro to rise on this upbeat growth.

Another positive report comes from Sentix: the probability of a euro-zone breakup is now only 6.9%, the lowest ever. The measurement began at the peak of the debt crisis, in 2012.

More: Is EUR/USD heading to 1.27? Two models point that way


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