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Economic news
30.04.2025

European session review: EUR weakens following Eurozone’s first-quarter GDP data

TimeCountryEventPeriodPrevious valueForecastActual
05:30FranceGDP, q/qQuarter I-0.1%0.2%0.1%
05:30FranceGDP, Y/YQuarter I0.8%0.7%0.8%
06:00GermanyRetail sales, real adjusted March0.8%-0.4%-0.2%
06:00GermanyRetail sales, real unadjusted, y/yMarch4.3%3.2%2.2%
06:00United KingdomNationwide house price index April0%0%-0.6%
06:00United KingdomNationwide house price index, y/yApril3.9%4.1%3.4%
06:45FranceCPI, m/mApril0.2%0.3%0.5%
06:45FranceCPI, y/yApril0.8%0.8%0.8%
07:55GermanyUnemployment ChangeApril26204
07:55GermanyUnemployment Rate s.a. April6.3%6.3%6.3%
08:00GermanyGDP (QoQ)Quarter I-0.2%0.2%0.2%
08:00GermanyGDP (YoY)Quarter I-0.2%-0.2%-0.2%
09:00EurozoneGDP (QoQ)Quarter I0.2%0.2%0.4%
09:00EurozoneGDP (YoY)Quarter I1.2%1%1.2%

EUR depreciated against most of its major rivals in the European session on Tuesday, as investors digested better-than-expected Eurozone GDP growth data for the first quarter of 2025.

Eurostat reported that its flash estimates revealed the euro-area economy expanded 0.4% QoQ in the first quarter, following a 0.2% QoQ advance in the previous quarter. This was the fifth consecutive quarterly growth and surprised economists who had predicted a gain of 0.2% QoQ. On the country level, Germany - the region’s largest economy - recorded a 0.2% QoQ rebound in GDP on stronger consumption and investment, and France - the Eurozone’s second-biggest economy - registered a 0.1% QoQ uptick, avoiding a recession. Both figures were in line with economists’ expectations.

On a YoY basis, the euro area economy grew by 1.2%, the same pace as in the fourth quarter of 2024. 

Better-than-expected Q1 GDP data were not enough to ease investors’ concerns over the prospects of the Eurozone's economy, as forward-looking business surveys point to a weakening, largely driven by persistent uncertainty surrounding U.S. trade policy and the lingering effects of tariffs.

Now, markets’ focus is shifting to the Eurozone’s consumer price index report, which is due on Friday. Economists forecast it to show that consumer prices in the region advanced 2.1% YoY in April, down from 2.2% YoY in the previous month. Meanwhile, the core inflation is predicted to edge up to 2.5% from 2.4% in March.

Gloomy growth prospects and a continuing retreat in inflation support the case for the European Central Bank to continue interest-rate cuts. 


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