EUR steady as Germany joins UK in negative growth territory
It’s been an interesting morning on the data side in Europe, where Germany joined the UK in the second quarter in recording negative growth. While the UK could argue its contraction is a temporary effect of first quarter stockpiling ahead of the initial Brexit deadline, Germany is arguably more concerning and reflects a broader slowdown as the world around it slows and trade takes a hit. That doesn’t give us much hope that the country will bounce back in the third quarter, as you’d expect with the UK, although that doesn’t seem to be knocking the euro which had already priced it in.
OANDA Senior Market Analyst Craig Erlam discusses all of this and gives his analysis on the EURUSD chart in the video below.