Euro area economic growth affirms preliminary flash print of 0.6 pct q/q in Q3

The flash estimate for the euro area third quarter GDO growth affirmed the preliminary flash reading of 0.6 percent quarter-on-quarter, slightly below the 0.7 percent recorded in the prior quarter and in line with the stronger euro area momentum seen in recent quarters. On a year-on-year, the euro area economy grew 2.5 percent, the highest rate since the beginning of 2011.

Meanwhile, the industrial production data that was also released today implied that growth in this sector gave notable support to GDP. While the industrial output data for September were in line with equivalent releases from major member states and showed a drop of 0.6 percent sequentially, production was still up by over 1 percent in the third quarter. This is similar to that seen in the second quarter.

“And going forward the German economy looks set to continue powering ahead, with today's ZEW survey signalling a further increase in business sentiment”, noted Daiwa Capital Markets in a research report.

The current situation index saw additional gains to reach a new highest level since mid-2011, while respondents’ assessment of the future situation rose to a six-month high. In the meantime, the Italian economy grew 0.5 percent sequentially.

At 19:00 GMT the FxWirePro's Hourly Strength Index of Euro was highly bullish at 160.4, while the FxWirePro's Hourly Strength Index of US Dollar was slightly bearish at -66.8657. For more details on FxWirePro's Currency Strength Index, visit http://www.fxwirepro.com/currencyindex

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