The Eurozone economy expanded by 0.3% over the quarter in the three months to June of 2023, compared with a 0.1% contraction seen in the first quarter, the latest data published by Eurostat showed on Monday. The market had expected a 0.2% growth in the reported period.

On a yearly basis, the bloc’s GDP rate grew 0.6% in Q2 vs. 1.0% recorded in Q1 2023 while beating 0.4% expectations.

Market reaction

EUR/USD was last seen trading at 1.1030, up 0.14% on the day, cheering a better-than-expected Eurozone GDP report.

 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).