Better Numbers From Europe This Morning, Mostly… Long Live Draghi
Skerdian Meta • 2 min read
Despite this morning´s jump in the Euro, the European economic data started off with the German prelim Q3 GDP missing its expectations. The German economy was expected to grow by 0.4% in the third quarter but it only grew by 0.2%. Mind you, this is the second estimate and we still have the final reading in about a month´s time, but it´s not a solid number nonetheless. That was one of the reasons we opened the EUR/USD sell forex signal which hit the take profit target a few minutes ago.
The rest of the economic numbers from Eurozone have been quite positive. The Italian GDP grew by 0.3% in Q3 against 0% in Q2. This is good news for Italy and Southern Europe, especially after more than a year of disappointing Italian economic growth.
If you remember a couple of weeks ago, the Spanish GDP jumped by around 3% year/year. The funny thing is that Spain has been without a government most of this time. This shows you what a country can do without politicians ruining everything from the top where they stand.
The EU trade balance just keeps growing
Just a while ago, another round of Eurozone economic data was released and it was positive as well. The Eurozone Q3 GDP came out at 0.3% as expected, but the German and the EU ZEW economic sentiment jumped higher again this month, while the trade balance widened in favour of the EU.
I bet the ECB (European Central Bank) must love these numbers, leaving aside the German GDP, of course. These are not particularly great numbers, but they´re steady and they´re pointing upwards. If these numbers keep coming, then I reckon in about a year ECB will start the tapering of the QE programme.