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EUR/USD so far unfazed by German potentially entering into a technical recession

The latest German Q4 2023 GDP data has just been released. The markets were anticipating a negative reading here, with the consensus for growth to have fallen by 0.3% over the period. The German economy shrank by 0.1% in Q3 2023. The flash Q4 data has just shown that it might have contracted again, by 0.3% in Q4. That is because this data is subject to revision. Leaving that aside, this means the German economy has now more than likely entered into a technical recession. A technical recession is defined by two consecutive quarters of negative growth. That said, the markets are not in the least surprised by this, because that is what was expected. The EUR/USD was trading at around 1.0820 as this data broke. It is now trading at 1.0821
 

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