No Scary Friday the 13th for Europe but Jitters Remain

Growth in the euro zone economy slowed in the third quarter from the second, according to new data from Eurostat, failing to meet expectations.

Preliminary gross domestic product (GDP) data for the third quarter showed the euro zone grew 0.3 percent quarter on quarter, below forecasts from analysts polled by Reuters for a 0.4 percent expansion. The economy grew 1.6 percent from the same period a year earlier.

The loss in momentum comes despite European Central Bank stimulus, in the form of its 1 trillion euro quantitative easing (QE) program, and a weakened single currency that should have boosted exports.

Chris Williamson, chief economist at Markit, said the subdued pace of growth and persistent weak inflation “applies further pressure on the ECB and increases the likelihood of the further measures being announced in December.”

“All eyes now turn to the ECB as it weighs up what measures to take to lift the region’s growth rate higher. Further cuts to the deposit rate, an increase in both the size, quality and duration of the current QE program have all been widely mooted as possibilities,” he said in a note Friday.


Craig Erlam
Based in London, England, Craig Erlam joined OANDA in 2015 as a Market Analyst. With more than five years' experience as a financial market analyst and trader, he focuses on both fundamental and technical analysis while conducting macroeconomic commentary. He has been published by The Financial Times, Reuters, the BBC and The Telegraph, and he also appears regularly as a guest commentator on Bloomberg TV, CNBC, FOX Business and BNN. Craig holds a full membership to the Society of Technical Analysts and he is recognized as a Certified Financial Technician by the International Federation of Technical Analysts.