Euro Finds Support As Germany and France Show Growth, Will U.S. Retail Sales Continue

Written by John Rivera, Currency Analyst
The Euro has started to consolidate after finding support on better than expected growth GDP figures reaching as high as 1.4282. The German economy unexpectedly grew by 0.3% as stimulus and rate cuts helped the region’s largest economy end its worst recession since WWII.
Talking Points• Japanese Yen: Weaker On Rising Optimism• Pound: Bouncing From Technical Support• Euro: Germany and France Show Growth• US Dollar: US Retail Sales on Tap
Euro Finds Support As Germany and France Show Growth, Will U.S. Retail Sales Continue Broader Optimism?
The Euro has started to consolidate after finding support on better than expected growth GDP figures reaching as high as 1.4282. The German economy unexpectedly grew by 0.3% as stimulus and rate cuts helped the region’s largest economy end its worst recession since WWII. An equal improvement in France nearly pulled the entire economic region out if recession as it only contracted by 0.1% versus expectations of 0.5%. Negative growth from Italy, Austria and the Netherlands helped dragged the broader reading lower and slowed Euro gains.
The ECB”s monthly bulletin was also released today and forecasted that growth would return to the euro-zone economy by next year. They would state “looking ahead into next year, after a phase of stabilisation, a gradual recovery with positive quarterly growth rates is expected.” The surprising GDP figures is putting a hole in the argument that Europe will lag the U.S. in a recovery and could continue to add Euro support. The ECB is expected to raise rate as soon as they deem feasible as they look to adhere to their price stability mandate. We could see the EURUSD look to test resistance at 1.446-the yearly high if optimism continues.