ECB Bulletin: High-frequency indicators, latest survey results consistent with a fall in GDP in Q4

Dhwani Mehta FXStreet

High-frequency indicators and the latest survey results are consistent with a fall in GDP in Q4 2020, the European Central Bank (ECB) said in its economic bulletin published on Thursday.

Additional takeaways

"Survey indicators point to a renewed contraction in an activity primarily affecting the services sector."

“Financial conditions in the euro area have loosened somewhat further since the Governing Council’s meeting in September 2020, amid improved risk sentiment on the back of positive announcements about vaccines.”

“The coronavirus pandemic has continued to influence monetary dynamics in the euro area.”

“Substantial fiscal support has mitigated the significant negative impact of the coronavirus pandemic on the real economy.”

“Incoming survey data point to a continued growth momentum at the start of the fourth quarter, although consumer confidence remains weak.”

Market reaction

EUR/USD drops 0.30% on a daily basis to 1.2286, having failed to find acceptance above 1.2300 once again.

Author

Dhwani Mehta

FXStreet

Residing in Mumbai (India), Dhwani is a Senior Analyst and Manager of the Asian session at FXStreet. She has over 10 years of experience in analyzing and covering the global financial markets, with specialization in Forex and commodities markets.

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