The preliminary release published by Eurostat revealed on Friday that the Eurozone economy expanded by 0.1% on a quarterly basis in the three months to March of 2023, missing the 0.2% expected and against the no growth seen in the previous quarter.

The bloc’s annual GDP rate grew by 1.3% in the first quarter (Q1) vs. a 1.8% print registered in the final quarter of 2022 while falling short of the 1.4% expectations.

Market reaction

EUR/USD was last seen trading at 1.0985, down 0.37% on the day. The Euro is consolidating the decline, triggered by the downbeat German GDP data and broad-based US Dollar rebound.

 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).