Italy Q2 preliminary GDP -12.4% vs -15.5% q/q expected

Latest data released by Istat - 31 July 2020

• Prior (Q1) -5.3%; revised to -5.4%
• GDP -17.3% vs -17.3% y/y expected
• Prior -5.4%; revised to -5.5%

The Italian economy shrank by an unprecedented 12.4% in Q2, though that is somewhat less awful than feared based on estimates at least. Istat noted that "all segments of the economy suffered" without providing much other details.

But that is to be expected given that Italy is one of the hardest hit countries in the euro area amid the virus crisis. Nonetheless, the market focus remains on the pace of the recovery so the data here isn't going to shift the dial ahead of the weekend.

EUR/USD is still firmer at 1.1880 but off earlier highs of around 1.1900 to start the session.