GERMAN GDP, IFO REPORTS LIFT EURO

The shared currency was higher Tuesday after a number of economic reports from the euro zone.

EUR/USD was last seen at 1.0648, up 0.1%, while EUR/GBP jumped 0.22% to trade at 0.7038.

The Federal Statistics Office has just confirmed that Germany’s GDP rose by just 0.3% in the July-to-September quarter, matching analysts' expectations.

Exports rose by just 0.2% quarter-on-quarter, compared to estimates of a 0.4% rise. Imports, though, jumped by 1.1%.

And the resulting net trade deficit wiped 0.4% of Germany’s growth rate -- the weakest since 2013.

Europe’s powerhouse economy was left relying on domestic spending. Private consumption rose by 0.6% quarter-on-quarter, as German shoppers dipped into their wallets and purses. Government spending rose by 1.3% - the biggest increase since early 2009.

As an official at the Office explained, the refugee costs have played their role, and those are the first effects on state spending.

Higher imports may cheer critics who argue that Germany needs to spend more to help the euro zone economy rebound. But weaker exports highlight renewed weakness in developing markets.

Separately, the German research institute Ifo has reported that its Business Climate Index rose to a seasonally adjusted 109.0 this month from a reading of 108.2 in October, beating forecasts for 108.2.

The Current Assessment Index increased to 113.4 in November from 112.7 a month earlier and above expectations for 112.4. The Business Expectations Index, which measures attitudes related to business prospects over the next six months, rose to 104.7 this month from 103.9 in October, compared to expectatons for a reading of 104.0.

The monthly gauge is based on a survey of around 7,000 German firms in the manufacturing, construction, wholesale and retail sectors.

In France, business confidence rose less-than-expected in the last quarter. INSEE said in a report that French Business Confidence rose to an annual rate of 102, from 103 in the preceding quarter. Analysts had expected French Business Confidence to rise 103 in the last quarter.

Credit:mql5.com

Thank you for reading GERMAN GDP, IFO REPORTS LIFT EURO.

EURO LITTLE CHANGED AFTER REGIONAL DATA

The euro traded lower against the dollar on Thursday, despite several economic reports from the euro zone that were mostly positive.

Spain’s gross domestic product rose last month, in line with expectations.

Instituto Nacional de Estadistica said in a report that Spanish GDP rose to 0.8%, compared with 0.8% in the preceding month and matching analysts' forecasts.

Separately, there were a couple of economic reports from the European Central Bank which said that Euro Zone M3 Money Supply rose to 5.3%, from 4.9% in the preceding month. Analysts had expected Euro Zone M3 Money Supply to remain unchanged at 4.9% last month.

The ECB also reported that Euro Zone Private Sector Lending climbed to 1.2%, from 1.1% in the preceding month. Economists had expected it to rise to 1.2% last month.

A report from Reuters speculating that the ECB is discussing the introduction of two-tiered bank charges and a broader composition of asset purchases has boosted expectations for more aggressive easing to be announced at the December 3 meeting.

EUR/USD was last seen at 1.0610, down 0.12%.

EUR/GBP was higher 0.19% at 0.7036.

Credit: mql5.com

Thank you for reading EURO LITTLE CHANGED AFTER REGIONAL DATA.

EURO DROPS AS GERMAN INFLATION RATE TURNS NEGATIVE AGAIN

Germany’s inflation rate has turned negative, for the first time since January.

The German consumer prices index fell by 0.2% year-on-year this month, according to new data from the Federal Statistics Office.

Analysts had expected the CPI to be unchanged; this negative reading could intensify calls for the European Central Bank to increase its QE programme.

The euro gave up 0.28% to trade at 1.1212 against the dollar.

Credit: mql5.com

Thank you for reading EURO DROPS AS GERMAN INFLATION RATE TURNS NEGATIVE AGAIN.