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Weakest German growth for five years gets.....>

FOREX: Weakest German growth for five years gets EUR off to a bad start
-While they may have dodged recession in Q4, Germany's GDP data for 2018 was
poor, with the country's statistics agency confirming the weakest growth in five
years at 1.5%. This, twinned with renewed concern over Italian banks and their
non-performing loans exposure, led the EUR lower from the off, with downside
accelerating on a break below the $1.1450 level. Bears now eye the 50-dma at
$1.1383 ahead of the flash crash lows at $1.1309.
-Outside of Italy, equity markets are generally recovering, with US equity
futures following suit. This has helped a modest recovery in AUD, NZD and CAD,
while CHF and JPY underperform. Risk sentiment remains acutely fragile, however,
with the UK parliament's 'meaningful vote' on Brexit due to take place this
evening. Voting on amendments takes place from 1930GMT, with the final vote on
the deal taking place at around 2030GMT. UK PM May is expected to lose
considerably, with the market reaction hinging around the degree of opposition.
-US PPI and appearances from ECB's Draghi, Fed's George, Kashkari and Kaplan are
the calendar highlights.
MNI London Bureau | +44 203-865-3809 |
MNI London Bureau | +44 203-865-3809 |

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