The German final GDP reading showed economic activity contracted 3.8% in the first quarter, which was in-line with preliminary release, while the annual rate of growth contracted 6.7% from the previous year
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[B]EURUSD – [/B]The German final GDP reading showed economic activity contracted 3.8% in the first quarter, which was in-line with preliminary release, while the annual rate of growth contracted 6.7% from the previous year. Meanwhile, private consumption increased 0.5% amid expectations for a 0.2% increase, while business spending and exports plunged 7.9% and 9.7%, respectively, to mark the biggest decline since recordkeeping began in 1970. At the same time, construction investments slipped 2.6% from the previous quarter despite expectations for a 2.0% drop, while the German GfK consumer confidence index held steady at 2.5 for the fourth consecutive month in June. In addition, import prices fell 0.8% in April amid forecasts for a 0.1% gain, which lowered the annualized rate of price growth to -8.6% from -7.1% in the previous month. Furthermore, a separate report showed industrial news orders for the Euro-Zone unexpectedly fell 0.8% in March to mark the eighth consecutive decline, while the annual rate slipped 26.9% from the previous year. Discuss the topic and your trade ideas in the EUR/USD Forum.
[B]CHFUSD[/B] – Swiss employment unexpectedly increased 0.1% to 3.96M in the first quarter, while the annualzed rated rose 0.8% from the previous year despite forecasts for a 0.1% drop, which encouraged an improve outlook for future growth, while the UBS consumption indicator slipped to 0.922 from a revised reading of 0.991 in March. The data suggests firms are scaling back on employment as the region faces its worst economic downturn in over a quarter century, and the outlook for future growth remains bleak as private-sector spending, which accounts for nearly half of the economy, falters. For more news and resources, visit the new Swiss franc Currency Room.