Breaking: German Preliminary GDP shrinks 10.1% in Q2 vs. -9.0% expected, EUR/USD unfazed
- German GDP arrives at -10.1% QoQ in Q2 vs. -9.0% expected.
- Annualized German GDP stands at -11.7% in Q2 vs. -10.9% expected.
- EUR/USD unmoved on the dismal German growth numbers.
According to the preliminary report published by Destatis on Thursday, the German economy contracted 10.1% inter-quarter in the second quarter of 2020 when compared to the expectations of -9.0% and -2.0% seen in Q1.
Meanwhile, the yearly rate plummeted by 11.7% in Q2 against the previous reading of -1.9% and missed market expectations of -10.9% contraction.
The stats office said that the GDP plunge in Q2 wiped out the economic growth of nearly 10 years in adjusted terms.
Separately, the Unemployment Rate in the Euro area’s economic powerhouse came in at 6.4% in July vs. 6.5% expected and 6.4% last. The Unemployment Change for July stood at -18K vs. +43K expectations.
About German Prelim GDP
The Gross Domestic Product released by the Statistisches Bundesamt Deutschland is a measure of the total value of all goods and services produced by Germany. The GDP is considered as a broad measure of the German economic activity and health. A high reading or a better than expected number has a positive effect on the EUR, while a falling trend is seen as negative (or bearish).
EUR/USD unfazed
The shared currency showed little reaction to the downbeat German growth numbers, as EUR/USD kept its recovery mode intact around 1.1760.
The spot hit a daily low of 1.1746 ahead of the German data, now shedding 0.26% on the day. The focus shifts to the US Q2 GDP.
Author
FXStreet Team
FXStreet
