GDP report for Q1 2023 as well as flash CPI data for April from Spain was released at 8:00 am BST today. While inflation data came in lower-than-expected, GDP beat expectations. Headline CPI inflation accelerated from 3.3% to 4.1% YoY but market expected an acceleration to 4.4%. Meanwhile, flash GDP report showed Spanish economy expanding at a pace of 3.8% YoY in Q1 2023, up from 2.6% YoY reported for Q4 2022 and above 3.1% YoY expected by the market.
Markets seem to give more gravity to miss in inflation data with EUR dripping slightly on the news. Lower inflation pressures than expected mean that ECB will have less reasons to continue steep rate hikes going forward. However, a lot will depend on releases from other European countries, especially Germany (today at 1:00 pm BST).
Start investing today or test a free demo
Open account Try demo Download mobile app Download mobile app
EURUSD dropped after release of Spanish data and erased around a half of the move higher that was triggered by French CPI release at 7:45 am BST. Source: xStation5
This content has been created by XTB S.A. This service is provided by XTB S.A., with its registered office in Warsaw, at Prosta 67, 00-838 Warsaw, Poland, entered in the register of entrepreneurs of the National Court Register (Krajowy Rejestr Sądowy) conducted by District Court for the Capital City of Warsaw, XII Commercial Division of the National Court Register under KRS number 0000217580, REGON number 015803782 and Tax Identification Number (NIP) 527-24-43-955, with the fully paid up share capital in the amount of PLN 5.869.181,75. XTB S.A. conducts brokerage activities on the basis of the license granted by Polish Securities and Exchange Commission on 8th November 2005 No. DDM-M-4021-57-1/2005 and is supervised by Polish Supervision Authority.
