Euro is Boosted by Strong Eurozone GDP
The euro has strengthened by 0.23% against the US dollar today. The euro/dollar pair is trading at 1.2411 level. Last week, the euro showed good results after US Treasury Secretary Steven Mnuchin said that the US had no problems with a weak dollar.
Preliminary data from the Statistical Office of the European Union (Eurostat) showed that the economy of the 19 countries of the Eurozone increased by 0.6% in Q4 compared with the previous quarter. The indicator coincided with analysts' expectations. As a result of 2017, the GDP of both the Eurozone and the EU increased by 2.5%. The dynamics of the Eurozone's GDP last year proved to be better than economists and the European Central Bank (ECB) had expected. This is the maximum growth rate over a decade.
The preliminary US GDP for the fourth quarter was disappointing. The indicator in 2.6% did not meet the forecast of 3.0%. The US economic growth was 2.3% in 2017, compared with 1.6% in 2016. Growth in the fourth quarter was affected by higher consumer spending, which led to an increase in imports. At the same time, consumer spending growth also increased inflation, as the consumer spending index rose by 1.9% in the fourth quarter, compared to 1.3% in the third quarter.