The Gross Domestic Product of Germany for the first quarter of 2011 was released today, on quarterly basis the data was improved and met the forecasts of 1.5%. The year on year GDP data which is not adjusted on seasonal effects came out at 5.2%. An increase of 0.5% on German exports and a 1% increase on the domestic demand helped the GDP of the country to perform better on the first quarter of 2011 compare to the 0.4% of the last quarter of 2010, giving a breeze of confidence to the troubled Euro zone. Upon the announcement of the data the Euro lost some 32 pips to slip to a low of 1.4036 against the US Dollar. However, now the EURUSD pair is showing a sign of appreciation as it is trading higher at 1.4055.
The Federal Statistical Office publishes the GDP data, which is way of measuring the value of goods and services produced on a designated period of time in Germany. Worldwide GDP is considered as an important indicator of the performance of the domestic economy of every country. Readings above expectations have positive effect on the domestic currency.