EUR Recovers Strongly After German GDP Revision – Scotiabank

Euro Recovers on Strong German GDP Revision, Scotiabank Predicts Further Gains

The Euro (EUR) has rebounded firmly, buoyed by a significant upward revision in Germany’s first-quarter GDP figures. The latest data revealed a 0.4% growth rate for Q1, twice the initially estimated 0.2%, exceeding market expectations. This revision has helped the EUR maintain gains above the 1.13 level against the US Dollar.

According to Scotiabank analysts, the strong German GDP data is triggering a bullish breakout from the EUR’s recent consolidation phase, characterized as a “bull flag” pattern that has been developing since last month. Trend momentum indicators remain highly positive, suggesting the Euro could continue its upward trajectory.

While some short-term resistance is expected in the 1.1380 to 1.1420 zone, the outlook remains optimistic. Scotiabank forecasts the EUR/USD pair could retest the 1.16 level soon, with potential to extend gains further towards the 1.18 to 1.20 range in the medium term.

The German economic data highlights renewed confidence in the Eurozone’s growth prospects, supporting a stronger Euro amid global market uncertainties.