Euro area economy likely to have grown 2.4 pct in Q3, says Wells Fargo

The third quarter advanced GDP report for the euro area is set to be released this week, along with the October headline inflation report. In recent quarters, the euro area economic growth has become increasingly widespread amidst stable gains in employment and rebounding business confidence. The growth has led to stronger conditions in the labor market. But in spite of the strong pace of the real GDP growth and the tightening in the labor market conditions, inflation continues to be benign.

In the second quarter of this year, the euro area’s real GDP growth accelerated, as the year-ago rate of economic growth surpassed the 2 percent threshold for the first time since the first quarter of 2011. The outturn marks the 17th straight quarter in which real GDP has grown on a sequential basis. Since the 2011-13 recession ended, the real GDP in the overall euro area has grown 7 percent.

“We expect GDP in the Eurozone to grow 2.4 percent in Q3, year over year, and to expand 2.2 percent and 2.1 percent in 2017 and 2018, respectively”, noted Wells Fargo in a research report.

At 20:00 GMT the FxWirePro's Hourly Strength Index of Euro was neutral at -31.0661, while the FxWirePro's Hourly Strength Index of US Dollar was highly bearish at -101.6. For more details on FxWirePro's Currency Strength Index, visit http://www.fxwirepro.com/currencyindex

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