EURUSD at 2024 Highs Above 1.10 After Q2 Eurozone GDP

EURUSD continues to show resilience today, moving above 1.10 and testing the yearly highs from the first day of 2024 at 1.1043. The second reading for the Q2 Eurozone GDP came in as expected at 0.3%, although industrial production for July posted another decline, which means that Q3 will be worse, however, the Euro is riding the wave of the positive risk sentiment, benefiting from the USD weakness and softer data from the US, while disregarding the economic slump in Europe.

The Eurozone’s economy showed modest growth in the second quarter, with GDP increasing by 0.3%, in line with expectations. However, the industrial production data for June was weaker than anticipated, declining by 0.1% instead of the expected 0.5% increase.

EUR/USD Chart Daily – The 1.09 Zone Turned Into Support

Additionally, May’s industrial production was revised downward, reflecting a sharper decline than initially reported. This combination of stagnant GDP growth and declining industrial output suggests that the Eurozone’s economic recovery is facing significant headwinds, raising concerns about future economic stability. But for now markets are focused on the US side of the coin.

Eurozone Q2 Flash GDP Released by Eurostat – 14 August 2024

• Eurozone Q2 GDP second estimate: +0.3% (in line with +0.3% expected).
• Preliminary Q2 GDP was also +0.3%.

The industrial production data was disappointing, showing a miss and a downward revision. Despite this, it doesn’t take away from the Q2 GDP figure that was also released. Here is the breakdown of the main components: