CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 78% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money.


Our systems have detected that you are using a computer with an IP address located in the USA. If you are currently not located in the USA, please click “Continue” in order to access our Website.

Local restrictions - provision of cross-border services

Swissquote Ltd is authorised and regulated in the UK by the Financial Conduct Authority (FCA). Swissquote Ltd is not authorised by any US authority (such as the CFTC or SEC) neither is it authorised to disseminate offering and solicitation materials for offshore sales of securities and investment services, to make financial promotion or conduct investment or banking activity in the USA whatsoever.

This website may however contain information about services and products that may be considered by US authorities as an invitation or inducement to engage in investment activity having an effect in the USA.

By clicking “Continue”, you confirm that you have read and understood this legal information and that you access the website on your own initiative and without any solicitation from Swissquote Ltd.

If cookies are currently disabled on your computer, you will be required to continue accepting this legal information for every new page visited on this website. In order to avoid this, please enable cookies on your computer.

Research Market strategy
by Swissquote Analysts
Daily Market Brief

EUR bounces on hopes of stronger growth


EUR bounces on hopes of stronger growth

By Vincent Mivelaz

Market participants are looking closely for signs of a recovery in economic growth in the euro area, as 1Q 2019 GDP figures are released this morning. Although considering yesterday release of ZEW sentiment indicator for May pointing to -1.6 (prior: 4.5), there are good reasons to consider that the outlook for the second quarter remains subdued, as risks over the US and China increases uncertainty with regard to external trade.

Germany is therefore a good example to illustrate the situation. The downtrend of soft indicator ZEW at -2.1 (prior: 3.1) in negative territory suggests that economic growth in the country should be restrained for the coming six months, despite strong growth figures in 1Q 2019 q/q of 0.40% (prior: 0%), highest since June 2018 and which would imply an end to the downturn at first sight. Yet the unusual contribution from construction investment due to a moderate climate in the period overestimates the gauge. Positive inflows came from domestic demand, machinery and equipment while government expenditure recorded a decline. In the same period, the y/y gauge printed at 0.60% (prior: 0.90%), lowest since March 2013, indicating that GDP is should flatten or potentially decline in the second quarter of the year. Under current situation, we would expect a recovery phase starting from second half 2019, as the Chinese economy is will benefit from government’s stimulus measures.

Currently trading at 1.1210, EUR/USD is heading along 1.1195 as US data are approaching.