ECB intended easing confirmed – ING

By FXStreet FXStreet (Guatemala) – Peter Vanden Houte, analyst at ING noted that according to Eurostat’s flash estimate Eurozone GDP expanded by 0.3% in the third quarter, below the 0.4% consensus estimate.

Key Quotes:

“Year-on-year growth came out at 1.6%.
On a country-by-country basis, Spain was again leader of the pack amongst the bigger countries with 0.8% quarter-on-quarter growth. France and Germany grew by 0.3%, Italy and Belgium saw a 0.2% expansion, while the Netherlands and Portugal disappointed with only 0.1% and 0% growth respectively. Greece experienced a 0.5% contraction, while in Finland GDP even fell by 0.6%.

While the GDP components haven’t been published yet, it is fair to say that consumers probably saved the day for the Eurozone economy in the third quarter. Both the renewed fall in energy prices and the declining unemployment rate have likely boosted disposable income, supporting consumption, in our view the single most important driver of the expansion at this moment. While we don’t expect a sudden spike in oil prices anytime soon, the boost from the recent fall in energy prices will gradually peter out over the coming quarters.
At the same time exports are currently facing headwinds on the back of the growth slowdown in the emerging …read more

Source:: FX Street