The Eurozone economy expanded by 0.7% on the quarter in the three months to June of 2022, beating 0.2% expected and 0.6% previous, the preliminary release showed on Friday. 

On an annualized basis, the bloc’s GDP rate rose by 4.0% in Q2 vs. 5.4% booked in the first quarter of 2021 while surpassing 3.4% expectations.

Also read: Eurozone Preliminary Inflation surges 8.9% YoY in July vs. 8.6% expected

Market reaction

EUR/USD was last seen trading at 1.0216, up 0.20% on the day. The euro failed to capitalize on the upbeat Eurozone GDP and inflation data, as the focus shifts to the US PCE inflation and Employment Cost Index.

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).