By CountingPips.com
The Eurozone Gross Domestic Product fell more than expected in the first quarter of 2009 according to a flash estimate released by Eurostat today. The 16-nation eurozone GDP declined by 2.5 percent in the January to March quarter following GDP contraction of 1.6 percent in the fourth quarter of 2008. The eurozone has been in
Today’s data surpassed economic forecasts that were expecting the GDP to decline by 2.0 percent and marked the largest GDP contraction on record for the eurozone.
Germany, the eurozone’s largest economy, saw a GDP decline of 3.8 percent in the first quarter following a revised GDP decline of 2.2 percent in the fourth quarter. France, the eurozone’s second largest economy, saw their economy decline in the first quarter as GDP decreased by 1.2 percent after posting a revised decline of 1.5 percent in the fourth quarter. Italy’s GDP declined by 2.4 percent in the first quarter after declining by 2.1 percent in the fourth quarter.
Other EU16 nation GDP declines were the Neatherlands (-2.8%), Spain (-1.8%), Austria (-2.8%) and Portugal (-1.5%). Cyprus, meanwhile, managed to show a flat GDP change for the quarter after growth of 0.5 percent in the fourth quarter of 2008.
Today’s flash estimate is followed up by two more revised GDP releases that are scheduled for release on June 3, 2009 and July 8, 2009.
Euro mixed in currency trading.
The currency markets today have seen the euro mixed in trading against most of the other major currencies after the GDP release. The euro has fallen versus the U.S. dollar, British pound, Japanese yen and Canadian dollar while gaining against the Australian dollar, New Zealand dollar and Swiss franc.
The euro has declined against the US dollar as the EUR/USD trades at 1.3554 in the afternoon in the US session at 12:28pm EST after opening the day at 1.3636.
The euro has fallen against the British pound as the EUR/GBP trades at 0.8898 after opening at 0.8952. The euro has slid today versus the Japanese yen as the EUR/JPY trades at 128.77 after the 130.91 opening. The euro has also declined versus the Canadian dollar as the EUR/CAD trades at 1.5922 after opening at 1.5971.
The euro has advanced versus the Australian and New Zealand dollars as the EUR/AUD trades at 1.7988 from 1.7965 and the EUR/NZD trades at 2.3056 from the 2.3027 opening. Against the Swiss franc, the euro has gained ground today as the EUR/CHF has advanced from 1.5066 to trading at 1.5113.
EUR/USD Chart – The Euro falling against the US Dollar today in Currency Trading and trading below the 100-period simple moving average in blue on the hourly chart.
