• Eurozone GDP expands by 0.4%
• Germany posts 0.2% growth
• Euro/dollar shows signs of upside recovery

The Eurozone economy expanded more rapidly than anticipated in the previous quarter; however, the outlook remains subdued due to the potential for excessive tariffs from a Trump presidency and the escalation of trade tensions with China.

The Eurozone GDP grew by 0.4% in Q3, marking the highest growth rate in two years, subsequent to a 0.2% increase in Q2 and surpassing projections of 0.2%. The most notable surprise was Germany, which recorded a 0.2% growth, despite most officials forecasting a recession due to the difficulties encountered by its vast industrial sector. France and Spain exceeded expectations, with GDP increases of 0.4% and 0.8% respectively.

In comparison to the same quarter a year ago, the bloc's expansion increased to 0.9% from 0.6% three months ago. This suggests that the bloc is on track to achieve a full-year growth rate of at least 1%, which is below the potential of expansion without stimulus or disruptions.

Today, the euro/dollar is experiencing a significant recovery, rising towards the 1.0860 level and fostering optimism for further bullish actions. A significant resistance is coming from the 200-day simple moving average (SMA) at 1.0870.