logo |

News

    Home   >     Industry    >     Main body

    German 4th Quarter GDP Revisions Support the DAX30 and the EUR

    Abstract:German 4th Quarter GDP revisions support the EUR and the DAX. Economic uncertainty caps the market impact, however.

      Following a busier Asian session, it was another relatively quiet day on the Eurozone economic calendar.

      German 2nd estimate GDP numbers for the 4th quarter were in focus this morning.

      [fx-primis-ad]

      Better Than Expected

      In the 4th quarter, the German economy grew by 0.3%, quarter-on-quarter. This was an upward revision to a 1st estimate growth of 0.1%. In the 3rd quarter, the German economy had expanded by 8.5%.

      Year-on-year, the German economy contracted by 2.7%, revised up from a 1st estimate 2.9% contraction. In the 3rd quarter, the German economy had contracted by 3.9%.

      According to Destatis,

    •   The second wave of the COVID-19 pandemic slowed the economic recovery in the final quarter of 2020.

    •   Household final consumption expenditure was down 3.3%, quarter-on-quarter.

    •   Government final consumption expenditure declined by 0.5%, following increases in the previous 3 quarters.

    •   Gross fixed capital formation in construction (+1.8%) contributed to growth in the 4th quarter

    •   Foreign trade increased at the end of the year and had an upward effect on GDP. In Q4, exports of goods and services were up 4.5%, quarter on quarter. Imports increased by a lesser 3.7%

      [fx-article-ad]Market Impact

      Ahead of the stats, it was a mixed start to the day for the EUR, which had risen to an early high $1.21663 before falling to a pre-stat low of $1.21441.

      Upon the release of the inflation figures, the EUR moved from $1.21568 to a post-stat high $1.21747 before easing back.

      At the time of writing, the EUR was up by 0.11% to $1.21631.

      [fx-image src=/2021/02/EURUSD-240221-Hourly-Chart.png data-zoom-target=https://responsive.fxempire.com/cdn/n/n/_fxempire_/2021/02/EURUSD-240221-Hourly-Chart.png originalWidth=1784 ratio=2.03]

      The upward revision also supported the DAX, which peaked with a 0.93% rise in response before easing back. At the time of writing, the DAX was up by 0.58%.

      While the numbers were market positive, the upside was limited, however. Economic uncertainty continues to linger amidst extended COVID-19 containment measures.

      Next Up

      Day two of FED Chair Powell testimony and new home sales figures. Dont expect too much direction from real estate sector numbers, however.

    Latest News

    United States Dollar

    • United Arab Emirates Dirham
    • Australia Dollar
    • Canadian Dollar
    • Swiss Franc
    • Chinese Yuan
    • Danish Krone
    • Euro
    • British Pound
    • Hong Kong Dollar
    • Hungarian Forint
    • Japanese Yen
    • South Korean Won
    • Mexican Peso
    • Malaysian Ringgit
    • Norwegian Krone
    • New Zealand Dollar
    • Polish Zloty
    • Russian Ruble
    • Saudi Arabian Riyal
    • Swedish Krona
    • Singapore Dollar
    • Thai Baht
    • Turkish Lira
    • United States Dollar
    • South African Rand

    United States Dollar

    • United Arab Emirates Dirham
    • Australia Dollar
    • Canadian Dollar
    • Swiss Franc
    • Chinese Yuan
    • Danish Krone
    • Euro
    • British Pound
    • Hong Kong Dollar
    • Hungarian Forint
    • Japanese Yen
    • South Korean Won
    • Mexican Peso
    • Malaysian Ringgit
    • Norwegian Krone
    • New Zealand Dollar
    • Polish Zloty
    • Russian Ruble
    • Saudi Arabian Riyal
    • Swedish Krona
    • Singapore Dollar
    • Thai Baht
    • Turkish Lira
    • United States Dollar
    • South African Rand
    Current Rate  :
    --
    Amount
    United States Dollar
    Available
    -- United States Dollar
    Risk Warning

    The Database of WikiFX comes from the official regulatory authorities , such as the FCA, ASIC, etc. The published content is also based on fairness, objectivity and fact. WikiFX doesn't ask for PR fees, advertising fees, ranking fees, data cleaning fees and other illogical fees. WikiFX will do its utmost to maintain the consistency and synchronization of database with authoritative data sources such as regulatory authorities, but does not guarantee the data to be up to date consistently.

    Given the complexity of forex industry, some brokers are issued legal licenses by cheating regulation institutes. If the data published by WikiFX are not in accordance with the fact, please click 'Complaints 'and 'Correction' to inform us. We will check immediately and release the results.

    Foreign exchange, precious metals and over-the-counter (OTC) contracts are leveraged products, which have high risks and may lead to losses of your investment principal. Please invest rationally.

    Special Note, the content of the Wikifx site is for information purposes only and should not be construed as investment advice. The Forex broker is chosen by the client. The client understands and takes into account all risks arising with Forex trading is not relevant with WikiFX, the client should bear full responsibility for their consequences.