The common currency of the European Union ceased a bearish rally against the world's reserve currency on Tuesday after economic data indicated Germany helped stave off a recession in the euro zone, according to Bloomberg.
Gross domestic product in the nation hosting the region's largest economy expanded 0.5 percent, about five-times as much as analysts and economists forecast. The New York Times reports the GDP of France was unchanged and Italy backtracked 0.8 percent. The hosts of the region's three largest economies are Germany, France and Italy, respectively.
"Today's data underlines the divergence across the euro-region, which you could argue is negative for the euro," currency strategist Chris Walker with UBS AG in London told the news source. "We expect the euro to grind lower."
While the euro benefited from the Germany GDP data, the embattled monetary unit also climbed from Luxembourg prime minister Jean-Claude Juncker noting debt-riddled Greece could have more time to implement budgetary cuts. But the euro zone was spared its second recession in three years by the German GDP figures.
Germany's GDP covered for the reduced pace of development in other nations, eight of which are in recession. A recession is indicated by two consecutive quarters of contraction.
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