EA GDP Declines by 0.2% in the 2nd Quarter, European Economic Sentiment Worsens, Euro under Pressure - 14.8.2012

The Eurozone Gross Domestic Product fell by 0.2% in the 2nd quarter of 2012 compared to the previous quarter according the flash estimates published by the Eurostat. The reading was in line with economists’ expectations, also earlier today 2nd quarter GDP readings for Germany and France were slightly better than expected. At the same time euro-zone Industrial Production from May to June declined more than expected, by 0.6%, down from a revised 0.9% increase from April to May. In annual terms Industrial Production fell by 2.1% in June, better than the revised 2.6% decrease in May. Lastly, the ZEW Economic Sentiment for Europe fell by 5.9 points in August to minus 25.5 points, the lowest value in 2012 according to CEER. The Euro versus the US dollar was under pressure after the economic releases and retraced from weekly highs at 1.2384, falling by 0.20% to 1.2358.