Euro-Zone fourth quarter GDP grew 0.1% missing estimates of 0.3% as Germany saw flat growth. The lack of improvement in the region’s largest economy nearly stalled the recovery as other members saw their recession deeper.
[B]Fundamental Headlines[/B]
[I]• Europe Vows to Save Greece – Wall Street Journal
• Economists Expect Shifting Work Force – Wall Street Journal
• China’s surprise monetary tightening shatters calm - Financial Times
• China Raises Reserve Requirement for Second Time in a Month to Cool Growth – Bloomberg
• Economic Recovery in Europe Unexpectedly Wilts After Stagnation in Germany- Bloomberg[/I]
[B]EUR/USD –[/B] Euro-Zone fourth quarter GDP grew 0.1% missing estimates of 0.3% as Germany saw flat growth. The lack of improvement in the region’s largest economy nearly stalled the recovery as other members saw their recession deeper. Greece, which has monumental budget deficit issues, saw a decline in GDP by 0.8% following a shortfall of 0.55% the prior three month period. Dissipating government stimulus may begin to negatively impact demand for exports unless growth in Asia is able to compensate for it. However, we saw China raise for a second time in five weeks take measures to limit lending to consumers and businesses. Euro-Zone industrial production sharply fell 1.7% in December led by declines in intermediate goods and capital goods. A 2.1% rise in energy output wasn’t enough to offset the broader weakness which warns of a potential double dip recession in the region. To discuss this and other topics, please visit the EUR/USD Forum.