Eurozone growth as expected, but industrial production contracts more than expected
As expected, we have seen Eurozone growth coming in at 0.2% in Q2, but as we saw earlier, this includes a contraction of 0.1% in Germany. The year on year growth rate is unchanged at 1.1% as a result.
However, we also got the June industrial production stats, which saw a much larger fall than forecasts - down 1.6% on the month vs -1.4% expected, with May revised lower to just 0.8%. This translates into a 2.6% fall in the year vs -1.2% expected, with the prior month also revised down to 0.8%.
Once again, the data is nothing new in terms of underlining the weakness in the Eurozone, so the dip in the EUR is again a modest one as the spot rate moves just a few ticks lower to attempt another test into the 1.1160-50 zone. This seems to be holding up well for now.
EUR/GBP is a little lower and is also attempting a test of the mid 0.9200's, with the sub 1.0900 levels in EUR/CHF also a sign that the single currency is not being let off lightly in the current climate.