UK inflation unexpectedly accelerated in July (Image: MarioGuti/Getty Images)
The publication of Germany’s latest GDP figures, which indicate the Eurozone’s largest economy could be heading toward a recession, left the euro feeling quite fragile this morning. Destatis reports German economic growth shrank 0.1 percent in the second quarter, stumbling from a 0.4 percent expansion at the start of the year. The slump in growth came as little surprise to markets, with domestic industrial data souring in recent months – an indication of global trade tensions taking their toll on the German economy.
Carsten Brzeski, chief economist for Germany at Dutch bank ING said: “Trade conflicts, global uncertainty and the struggling automotive sector have finally brought the German economy down on its knee.”
However, with year-on-year growth coming in above expectations, the euro seems to be holding ground so far this morning.
Meanwhile, the pound is trading in a narrow range