Separate report showed that the German economy continued its moderate growth at the end of 2015. In the fourth quarter of 2015, the gross domestic product (GDP) rose 0.3% on the previous quarter after adjustment for price, seasonal and calendar variations. The economic situation in Germany in 2015 was characterised by solid and steady growth (+0.3% in the third and fourth quarter each and +0.4% in each of the first two quarters). In a quarter-on-quarter comparison positive contributions were made by domestic demand again.
General government final consumption expenditure was markedly up, while household final consumption expenditure rose slightly again. A positive development was also observed for capital formation. Especially gross fixed capital formation in construction was markedly up on the third quarter of 2015. According to provisional calculations, the development of foreign trade had a downward effect on growth because the exports of goods were down on the previous quarter. Imports decreased, too, though less strongly.
Euro is currently being traded around 1.1280 area. Pair is likely to find support around 1.12 handle and resistance above 1.1380 level. Later today, in the US session, Retail Sales and Consumer Sentiment figures are scheduled for a release.
