France GDP increases in 3rd Quarter. Euro pushes to new record high against Pound. | CountingPips Forex Blog

December 29, 2008 - Forex Economic News

France GDP increases in 3rd Quarter. Euro pushes to new record high against Pound.

The French economy grew in the third quarter of 2008 and avoided recession according to a new release today by the National Institute for Statistics and Economic Studies(INSEE). Today's report showed that the French Gross Domestic Product grew by 0.1 percent in the July to September quarter following the second quarter decrease in GDP by 0.3 percent. The Euro hits record high versus Pound first quarter of 2008 GDP had advanced by 0.4 percent according to INSEE. The third quarter increase was in line with market forecasts and avoided a contraction in GDP for two consecutive quarters which is the generally accepted definition of a recession. On an annual basis, the French GDP grew at a 0.6 percent pace over the third quarter of 2007 following the second quarter's 1.2 percent decrease.

Contributing to the increase in GDP were French exports which increased in the third quarter by 1.4 percent after falling by 1.9 percent in the second quarter. Imports increased in the third quarter by 1.7 percent following a decline of 0.3 percent in the second quarter. Household expenditures increased by 0.2 percent for the quarter after remaining flat in the previous two quarters. Government expenditures rose by 0.6 percent in the third quarter following increases of 0.5 percent and 0.4 percent in the second and first quarters, respectively.

Euro pushes to new record against British Pound.

Today's forex trading has seen the euro advance against the British pound to reach a new record high exchange rate and continue to push towards parity. The euro reached a new all-time record high at 0.9801 pence per euro before retreating and trading lower according to currency exchange data by Oanda. The EUR/GBP currently trades at approximately 0.9711 pence per euro at 1:58 pm ET in the US trading session after opening the day at 0.9658 pence per euro at 00:00GMT.

Elsewhere, the euro has decreased in trading against all of the other major currencies today. The EUR/USD opened trading today at approximately 1.4151 and has declined to trading at 1.4147 in the afternoon of the US session while the euro has also fallen today against the Japanese yen as the EUR/JPY trades at 126.56 from its 128.13 opening rate. The euro has declined verses the Swiss franc to trade at 1.4832 from 1.4997. Against the Canadian dollar, the euro has declined to trading at 1.7096 CAD per euro after opening the day at 1.7153. Against the Australian and New Zealand dollars, the euro has declined to trading at exchange rates of 2.0375 and 2.4274, respectively.

EUR/GBP Chart - The Euro reached a new record high today against the British Pound and keeps pushing towards parity(Daily Chart).

Today's Forex Chart

tags: france, gdp, economy, euro, record high, pound, forex

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