Euro Rises Despite EU GDP Contraction in Q3; Inflation and Stimulus Offer Hope
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EU GDP contracted 0.1% in Q3 quarter-on-quarter, following contraction in Germany. However, euro currency rose.
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Inflation shows signs of improvement, keeping stagflation fears at bay for now.
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Recent Chinese stimulus could help stem euro declines, as China is a major trading partner.
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Germany contracted quarter-on-quarter and year-on-year, but data was better than initially feared.
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Next up FOMC meeting, US nonfarm payrolls, and services PMI data which could impact EUR/USD.