Prior 0.0%GDP Y/Y 0.4% vs 0.4% preliminaryPrior 0.3%No changes to the preliminary estimates. The German economy has been recovering gradually due to the expansionary fiscal policies and the ECB rate cuts. The momentum should hold in the first quarter given the strong data we had so far, unless there is a major slump in March. Economists expect the economy to grow about 1.0% in 2026, up from just 0.3% in 2025.
This article was written by Giuseppe Dellamotta at investinglive.com.
💡 DMK Insight
Germany’s GDP holding steady at 0.4% is a crucial signal for traders: This stability suggests that the economy is responding well to expansionary fiscal policies and ECB rate cuts. For forex traders, this could mean a stronger Euro against currencies like the USD, especially if the trend continues into the first quarter. Keep an eye on the Euro’s performance around key resistance levels; a break above those could trigger bullish momentum. However, it’s worth questioning whether this growth can sustain itself amid global economic uncertainties. If inflation pressures rise or geopolitical tensions escalate, we might see a shift in sentiment. Traders should monitor upcoming economic indicators closely, particularly any shifts in ECB policy or inflation data, as these could impact market dynamics significantly. Watch for the Euro to react around the 1.10 level against the USD, as a breach could signal a new trend.
📮 Takeaway
Watch the Euro around the 1.10 level against the USD; sustained GDP growth could trigger bullish momentum if resistance breaks.





