Eurozone: GDP growth lags the persistent rise in survey data - Westpac

Tim Riddell, Research Analyst at Westpac, explains that Eurozone Q1 GDP continued its steady growth, but lags the persistent rise in survey data since Q3 16.

Key Quotes

“Mar industrial production is released at the same time as EC updates its forecasts for the region next week. Could hard data start to reflect the rise in surveys?”

“The French presidential race enters its final furlong, but Macron’s failure to excite voters has seen some tightening of the polls. He remains the presidential heir apparent, but the optics of closing spreads may raise concerns over the Assembly ballots (11th and 18th June). Rising National Front support could see an unstable coalition under an ineffective president and so cap EUR gains.”

“Brexit negotiations are becoming uglier and may undermine both EUR and GBP, providing periphery support for CHF.”

“EUR/USD may now have solid support on any pullbacks, but does appear to be capped in front of 1.10-12.”