Eurozone growth: Broad-based weakness – Wells Fargo
By FXStreet According to analysts from Wells Fargo, considering GDP data from the Q4 in the Eurozone, the European Central Bank my choose to ease policy further at the next meeting.
Key Quotes:
“Real GDP growth in the Eurozone remained modest in Q4, rising only 0.3 percent. Facing soft growth and minimal inflationary pressures, the ECB may choose to ease policy further at its next meeting.”
“Data released this morning showed that the Eurozone economy grew just 0.3 percent on a sequential basis in Q4 2015, in line with expectations. The weak reading brought the year-over-year rate of growth down slightly to 1.5 percent, while the economy grew just 1.8 percent in full year 2015.”
“While the broader expansion in euro area economic activity remains in place, the 1.5 percent year-ago growth rate registered in Q4 is hardly a blockbuster pace, and has not been strong enough to stoke sustained inflationary pressures in the region.”
“While it is unclear at this time what form additional monetary stimulus would take, we expect policy will become more accommodative in coming months. Given our expectation for further modest interest rate hikes from the Federal Reserve, our currency strategists expect the euro to weaken vis-à-vis the greenback over …read more
Source:: FX Street
