The latest data from the European Union reinforces the outlook provided by the head of the European central bank last week. After the ECB made its police decision on Thursday, ECB chief Mario Draghi had said that more stimulus would be needed in the Euro-area to prevent further deterioration of the overall EU economy. Indeed, today's various data releases suggest Draghi was correct. In France, preliminary GDP data for the second quarter shows a decline to 0.2% from the 0.3% growth that analysts had expected. In Germany, as predicted, consumer confidence fell to 9.7 from the previous reading of 9.8. As a whole, the Eurozone's consumer confidence survey reading came in at -6.6, with the last reading adjusted to -7.2.
As reported at 11:42 a, (GMT) in London, the EUR/USD was trading at $1.1148, up 0.0179% and moving away from the session trough of $1.11321 while the high was at $1.11527. The EUR/GBP was trading at 0.9145 Pence, up 0.2686%; the pair has ranged from 0.91160 Pence to 0.91901 Pence in today's session.
German Inflation Data in Focus
More EU data is expected out later today. Germany's national statistics office is expected to report that preliminary personal inflation data for July should be lower at 1.3% from 1.5% in the previous reading (year-over-year basis). Germany is the largest economy in the Eurozone, followed by France, and any deterioration of their economy will impact the common currency.