The Euro (EUR) claws back its early losses and turns almost flat against the Japanese Yen (JPY) after the release of preliminary German Q2 Gross Domestic Product (GDP) and inflation data for its six states.
In the European session on Thursday, EUR/JPY turns flat at around 187.35
The data shows that the economy expanded 0.2% Quarter-on-Quarter (QoQ) against 0.1% estimates. In the first quarter of the year, the GDP growth was 0.3%. On an annualized basis, the GDP growth remained stronger at 0.9% vs. 0.6% estimates and the prior release of 0.4%.
Meanwhile, the inflation data in all six states of Germany remained stronger in July, staging a strong ground for the flash German Harmonized Index of Consumer Prices (HICP) data, which will be published at 12:00 GMT. Eurozone Q2 GDP data seems stronger than that of Germany. Old Continent’s GDP returns to growth after declining 0.2% in the first quarter of the year.