Eurozone Preliminary GDP contracts by 0.6% QoQ in Q1 vs. -0.8% expected

The Eurozone economy contracted 0.6% on quarter in the three months to March of 2021, beating -0.8% expected and -0.7% prior, the first estimate showed on Friday. 

On an annualized basis, the bloc’s GDP rate dropped by 1.8% in Q1 vs. -4.9% booked in the final quarter of 2020 while beating -2% expectations.

Separately, Eurozone's unemployment rate arrived at 8.1% in March when compared to February’s 8.3%.

FX implications

The euro ignores the upbeat Eurozone growth and jobless rate data, as EUR/USD flirts with daily lows of 1.2095, down 018% on the day.

About Eurozone Preliminary GDP

The Gross Domestic Product released by Eurostat is a measure of the total value of all goods and services produced by the Eurozone. The GDP is considered as a broad measure of the Eurozone economic activity and health. Usually, a rising trend has a positive effect on the EUR, while a falling trend is seen as negative (or bearish).