Last week saw the release of GDP data from the Eurozone with the bloc showing 0.2 percent growth for Q4 2018, which matched the performance of Q3. The main talking point however was that Germany was seen to have avoided a recession by the narrowest of margins with the latest data showing a flat reading for its Q4 GDP. In Germany, after Q3’s -0.2 percent another negative figure would have constituted a technical recession, so it was a very close call. The Eurozone continues to be weighed down by the US-China trade deadlock and the potential for a no-deal Brexit. It seems European Central Bank chief, Mario Draghi, may well depart from his role in November without ever having raised interest rates.
The EUR/USD pair is trading at 1.1326 this morning, and technically speaking it is at a resistance in the short term. However, it is forming a long-term support above 1.1250, which is positive for the EUR/USD pair.