9:09 AM EST November 13th, 2009
The Euro-zone economy came out of recession in the 3rd quarteras was expected, though the growth in the quarter at a seasonally adjusted 0.4% was smaller than forecasts of a 0.5% increase. On the year the economy was down 4.1%. The rise was propelled by higher exports from Germany and France as well as the shot in the arm the economy received from government stimulus measures and loose monetary policy from the ECB. Still, there is high unemployment which is cutting into consumer spending and economists now turn their eye onto what happens as the stimulative fiscal and monetary policies begin to be withdrawn from the economy. Another concern is the rise of the Euro which makes European goods more expensive abroad. The German economy grew a seasonally adjusted 0.7% following a 0.4% increase in the 2nd quarter, while France grew 0.3% and Italy 0.6%. All three of those figures were below forecasts.
The EUR/USD, which had been gaining overnight following a slide in Thursdayâ€™s trading, stalled at the 1.49 area following the release, while the EUR/JPY slid to a new low for the week, breaking through a support level around 134.00.
Official Release:EuroStat (PDF)Via FX Times