• German economy skirted a technical recession in the first quarter of 2023.                
• EUR/USD keeps losses near 1.1000 on the downbeat German GDP data.

The German economy showed no growth on a quarterly basis in the first quarter of 2023, according to the preliminary data published by Germany's Destatis on Friday. The market consensus was for a 0.2% clip. The euro area’s economic powerhouse contracted by 0.4% in the fourth quarter of last year.

Germany’s annualized Gross Domestic Product shrank 0.1%, down sharply from 0.9% recorded in the final quarter of 2022, and missed the market expectation of 0.3%.

Meanwhile, German unemployment rose more than expected by 24,000 in April. The seasonally adjusted Unemployment Rate remained stable at 5.6%.

Market reaction

The Euro is under renewed selling on the downbeat German data, with EUR/USD losing 0.34% on the day to test daily lows near 1.0985, at the time of writing.