By CountingPips.com
The Eurozone economy emerged from recession in the third quarter according to a final estimate by Eurostat released today. The 16-nation eurozone gross domestic product advanced by 0.4 percent in the July to September quarter following a GDP contraction of 0.2 percent in the second quarter. The eurozone had registered five straight quarters of declining growth 
and experienced its first recession on record.
The contraction in GDP failed to surpass the expectations by market forecasters of a 0.5 percent gain for the economy. On an annual basis, the eurozone economy was still 4.1 percent below last year’s third quarter level following the second quarter’s annual contraction of 4.8 percent. Economic forecasts were looking for an annual decrease of 4.5 percent.
The EU27 saw a rise in GDP by 0.2 percent for the third quarter while on an annual basis GDP was down by 4.3 percent.
Germany, the eurozone’s largest economy, which emerged out of recession in the second quarter, saw a GDP gain of 0.7 percent for the third quarter. France, the eurozone’s 2nd largest economy, showed GDP growth of 0.3 percent for the second quarter in a row. Other EU16 countries showing a positive GDP in the quarter were Belgium, Italy, the Netherlands, Austria, Portugal and Slovakia.
Despite the positive GDP data, the euro has been mostly losing ground today in the currency markets. The euro has fallen against the Swiss franc, Canadian dollar, British pound, Australian dollar and New Zealand dollar while gaining against the US dollar so far today.
EUR/CHF Daily Chart – The Euro falling today versus the Swiss Franc in forex trading. The EUR/CHF is falling to levels where there has been previous heavy buying. The Swiss National Bank has intervened this year in order to keep the franc lower and avoid deflationary pressures in Switzerland. The 1.5080 level has been a significant support level for this pair and will present a test of franc strength.
