The Eurozone economy expanded by 0.2% on the quarter in the three months to March of 2022, missing 0.3% expected and 0.3% prior, the preliminary estimate showed on Friday. 

On an annualized basis, the bloc’s GDP rate rose by 5.0% in Q1 vs. 4.7% booked in the fourth quarter of 2021 while matching 5.0% expectations.

Also read: Eurozone Preliminary Inflation rises 7.5% YoY in April vs. 7.5% expected

FX implications

EUR/USD was last seen trading at 1.0575, up 0.78% on the day. The euro failed to react to the Eurozone GDP and inflation data, as the correction in the US dollar leads the way.

About Eurozone Preliminary GDP

The Gross Domestic Product released by Eurostat is a measure of the total value of all goods and services produced by the Eurozone. The GDP is considered as a broad measure of the Eurozone's economic activity and health. Usually, a rising trend has a positive effect on the EUR, while a falling trend is seen as negative (or bearish).