Muted Reaction to Positive German Data
A flurry of Q1 GDP reports from European countries was released this morning. However, the most closely watched one, as always, was the German release at 9:00 am BST. The German report was expected to show a 0.1% QoQ expansion in Q1 2022, following a 0.3% QoQ contraction in Q4 2021. Report turned out to be slightly better-than-expected with a 0.2% QoQ expansion. Given that reports from other European countries released today (France, Spain) missed expectations, German reading can be seen as a positive.
Other European Q1 GDP releases:
- France: 0.0% QoQ vs 0.3% QoQ expected
- Spain: 0.3% QoQ vs 0.5% QoQ expected
- Italy: -0.2% QoQ vs -0.2% QoQ expected
Market reaction to the release was quite muted. EURUSD did not experience any major moves in the aftermath of the release. Equity indices seesaw in a very narrow range. Taking a look at DE30 chart at the H1 interval, we can see that the index was locked between 14,200 pts resistance and support marked with 38.2% retracement. Situation remains unchanged following the release with post-data move being less than 20 points.
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