A slew of GDP data coming out of the Eurozone was released during the 5/15 European trading session.
2012 Q1 GDP estimates
France: 0.0%, forecast 0.0%, previous 0.1% (revised from 0.2%) - Flat as expected.
Germany: 0.5%, forecast 0.1%, previous -0.2% - Avoided recession
Italy: -0.8%, forecast -0.6%, previous -0.7% - In recession
Euro Area: 0.0%, forecast -0.2%, previous -0.3%
The euro area as a whole barely avoided a recession after Q1 mainly saved by the positive German GDP data.
May sentiment data from the ZEW reflect tension:
Euro Area ZEW Economic Sentiment: -2.4, forecast 11.7, previous 13.1
German ZEW Economic Sentiment: 10.8, forecast 19.1, previous 23.4
Economic sentiment is sliding due to the uncertainty in the Greek election as well as new leadership in France and how all this plays out regarding these bailed-out countries dealing with unpopular austerity measures.
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The Euro therefore remains pressured, but since breaking below 1.29, the EUR/USD has recovered slightly over the European session, staying above 1.28 and and reaching 1.2865 ahead of the 5/15 US trading session.
CPI and Retail Sales data for April is just around the corner at 8:30AM EDT.
Fan Yang CMT is a forex trader, analyst, educator and main contributor for FXTimes - provider of Forex News, Analysis, Education, Videos, Charts, and other trading resources.