14 Nov 2013
Euro down after Germany falters and France falls
FXstreet.com (London) - The Eurozone continued to show signs of a stagnating economic recovery this morning with disappointing GDP numbers.
German growth slowed in the third quarter on declining exports, while France’s economy contracted.
German GDP rose 0.3 percent, in line with expectations, down from 0.7 percent in the second quarter. The slowdown is attributed to domestic demand failing to make up for the shortfall in exports.
While Germany continues to underpin any Eurozone growth, France continues its decline.
GDP shrank by 0.1 percent, against consensus expectations of flat growth. France’s ability to fight its way out of recession has been sandbagged by president Francois Hollande’s attempts to tax the country into prosperity, driving away investment. Investment spending by non-financial companies fell 0.6 percent in the quarter in the face of a huge tax burden.
One in four French youths are unemployed, part of the 3.3 million unemployed in France as a whole – something that led the S&P to downgrade France earlier in the month to AA.
EUR/USD is down 0.15 percent to USD1.3467 after hitting a low of USD1.3451.
German growth slowed in the third quarter on declining exports, while France’s economy contracted.
German GDP rose 0.3 percent, in line with expectations, down from 0.7 percent in the second quarter. The slowdown is attributed to domestic demand failing to make up for the shortfall in exports.
While Germany continues to underpin any Eurozone growth, France continues its decline.
GDP shrank by 0.1 percent, against consensus expectations of flat growth. France’s ability to fight its way out of recession has been sandbagged by president Francois Hollande’s attempts to tax the country into prosperity, driving away investment. Investment spending by non-financial companies fell 0.6 percent in the quarter in the face of a huge tax burden.
One in four French youths are unemployed, part of the 3.3 million unemployed in France as a whole – something that led the S&P to downgrade France earlier in the month to AA.
EUR/USD is down 0.15 percent to USD1.3467 after hitting a low of USD1.3451.