The German economy continues to show positive macroeconomic data
If last week we talked about the good macroeconomic data coming out of Germany and the eurozone in response to positive ZEW projections for the coming months and the good GDP results from several European companies. This week, we have learned new positive macroeconomic data which may drive the German economy forward for the next few months.
Yesterday, Wednesday, we learned of the important German GDP data, where there was an increase of 0.3% compared to the 0.1% expected in the fourth quarter, the annual result being a decrease in GDP of 2.7% compared to 2.9% expected.
Today, we also found out that the Gfk index of the German consumer climate, which measures the level of consumer confidence in economic activity, improved, indicating the willingness of consumers to spend. It now stands at -12.9 compared to the -14.3 expected.
On the other hand, Jerome Powell appeared in front of the Congress and Senate of the United States, where the president of the Fed reiterated that the American economy is still far from full recovery, so the stimulus plan will continue. On the other hand, the meeting also assuaged fears about inflation for the time being, indicating that it may still take 2-3 years to reach the inflation target of 2%, which caused a positive close on Wall Street.
Despite this good news, the German DAX gave up just over 0.6%, thus continuing with the correction of the last sessions after setting all-time highs, causing the stochastic to leave its overbought level, although still and for the moment the month of February is being positive with an increase of more than 3.5%.
For the moment, the price is supporting its 18-session black average which acts as its first support level, still trading far from its uptrend line and its 200-session average.
Source: DAX30 daily chart of Admiral Markets MetaTrader 5 platform from November 1, 2019 to February 25, 2021. Realized: February 25 at 12:50 CET. Note: Past performance is not a reliable indicator of future results or future performance.
Price evolution of the last 5 years:
- 2020: 3.6%
- 2019: 25.48%
- 2018: -18.26%
- 2017: 12.51%
- 2016: 6.87%
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