EURUSD Targets Fresh Highs Post Impressive German GDP

• EURUSD enjoyed a good bullish run Intraday, as the economic releases in the Euro Zone exceeded the forecast.

• German Gross Domestic Product released by the Statistisches Bundesamt Deutschland posted an increase of 1.1% in the first quarter of 2015, compared with the forecast of 1%.

• In terms of the quarterly change, the German GDP rose by 0.3%.

German GDP

Earlier during the London session, the German Gross Domestic Product, which measures the total value of all goods and services produced by Germany was released by the Statistisches Bundesamt Deutschland. The forecast was lined up for an increase of 1% in the first quarter of 2015, compared to the same quarter a year ago. However, the outcome was above the forecast, as the German GDP increased by 1.1% in the non-seasonal adjusted terms.

When we consider the quarter-over-quarter change, then the German GDP rose by 0.3%, upon price, seasonal and calendar adjustment. The report stated that the final consumption expenditure of households climbed by 0.6%, and similarly, government final consumption expenditure rose by 0.7% compared with the preceding quarter. Moreover, when we look at Capital formation, then it also posted an increase by 1.5% (machinery and equipment) and construction rose by 1.7%.

German IFO Business Climate Index

There was one more release lined up, as the German IFO Business Climate Index was published by the CESifo Group. The market was expecting it to decline from 108.6 to 108.3. However, the outcome was better-than-expected, as the German IFO Business Climate Index declined by only 0.1 point to 108.5 in May 2015.

The report stated that “companies were once again more satisfied with their current business situation, but expressed slightly less optimism about the months ahead. The German economy remains on track”.

Overall, the reports were above the forecast, which in turn helped the EURUSD pair to gain some ground. The pair traded above 1.1180 resistance level and looks set for more gains.

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