Euro GDP could tumble on Q1

Monday, May 11, 2009

Despite the lack of macroeconomic events during American session, volume remained high most of the day, following stocks swings. Wall Street fell after confidence tumble, turning European currencies to correction move after past week rally. 

Minor data published earlier in the euro zone, has turned into a key factor for the most traded currency of the world: early Tuesday, French and Italian Industrial Production slumped to record lows in March, suggesting euro zone economic contraction in these first three months of the year could be the worst on record. Italian industrial output fell 24%, while French industrial production fell 16% over the past month. Euro zone GDP for the first Q1 to be release next May 15, is forecasted to contract for the fourth straight quarter, this time at a rate of -2.0 percent, compared to -1.6 percent in Q4 2008, while the year-over-year rate could fall by a whopping 4.1 percent. Such reading will indicate that recession continued deepening this first quarter of the year, and could probably signal losses ahead for Euro.

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