Eurozone growth as expected, but fresh troubles in Italy?
This morning's release of Eurozone GDP for Q1 came in at 0.4%, translating into a 1.2% annualised rate - both of which were as expected. Employment growth was a little better than forecast, rising 0.3% in Q1 vs 0.2% expected.
Early on this morning, Germany also released its GDP results for Q1, and this also came in at 0.4%, but the year on year rate was a touch softer than forecast at 0.6% (vs 0.7%). French CPI came in at 1.3% in April, up 2 tenths from March.
EUR/USD is unmoved under the circumstances, but yesterday's news that Italy could break its budget rules has hit BTPs (Italian bonds) this morning, sending yields higher and widening the spread with German Bunds. This has previously hit EUR/USD, but there is no reaction this time around, which looks a little odd, though this may be down to exhausted USD upside.
Later on today, US retail sales may draw in better interest in the market. So far this morning, the price action has been muted in relation to what is going on in other markets. This is getting to be a familiar pattern, though we have had little else to trade off other than the US-China trade spat which has hurt risk sentiment and looks set to keep investors on edge for now.