Euro Moves Higher After Eurozone, German Data
Euro continues to strengthen against US dollar today. The EUR/USD pair grew by 0.16% to trade at 1.1724 level. Eurozone economic growth slowed slightly in the second quarter. Eurostat said the euro area economy grew by an annualized 2.1% in the three months to June, down from 2.5% in the first quarter, compared to forecasts of 2.2%. The economy expanded by 0.3% qoq in the second quarter.
Meanwhile, Eurozone inflation accelerates in July. Eurozone consumer price index rose 2.1% in July from the same month a year earlier, compared to expectations for a reading of 2%. Core inflation rose to an annual rate of 1.1% from 0.9% in the previous month. The ECB targets inflation of close to but just under 2%.
The unemployment rate in the Eurozone was 8.3% in June, in line with expectations. The number of unemployed increased by 14.000 people compared to the previous month to 13.57 million in June.
Retail sales in Germany recovered in June after the fall a month ago. German retail sales grew by 1.2% in June compared to the previous month, having replaced the fall by 1.5% in May. It was expected that sales will recover by 1%. On an annual basis, retail sales grew by 3%, much more than the 1.5% growth forecast.