Another widely anticipated report was published on Wednesday, showing the Eurozone has finally emerged from its longest-ever recession after contracting for 18 months, however a resolution to the region's twin banking and fiscal crises remains a distant prospect. On Wednesday the EU's statistical office Eurostat said the combined gross domestic product of the area that has the Euro in circulation, expanded 0.3% in the second quarter, up from the 0.3% contraction in the first quarter, with its two biggest countries both revealing surprising strength. Moreover, confidence among German investors increased more than initially was expected in August, reaching a five-month high, as Europe's powerhouse helped pull the whole region out of its longest-ever recession. Also this week Angela Merkel kicked off her official elections campaign by explaining differences between herself and rival parties on taxes and minimum wage. According to the results of an opinion poll conducted by market research company Forsa, Merkel's ruling coalition has cemented a narrow lead just several weeks before an election. Even though the 17-nation economy is finally starting to recover, upbeat data masks the mixed economic fortunes among all countries in the Eurozone, as several big economies are still experiencing a severe contraction. Soon after the report European Commission Vice-President Olli Rehn pointed out that the overall economy is gradually gaining momentum, however there is no room for complacency. Amid positive figures from Europe and mixed signals from the U.S., EUR/USD, the most traded currency pair was little changed and closed at 1.3329 on Friday, compared with an opening price of 1.3338.
Swiss companies and statistical office also published some fundamental data this week. On Monday the Federal Statistics Office showed that Swiss retail sales picked up 2.3% annually, up from downwardly revised 1.5% registered in the preceding month, while on a monthly basis real retail turnover gained 0.5%, recovering from May's 0.3% drop. Also this week data showed Producer and imports prices in Switzerland remained unchanged in July from a month earlier. According to the Federal Statistics, the prices of domestically produced and imported goods were flat last month, from June's 0.1% increase, and slightly below analysts' expectations of a 0.2% rise. In a separate report the Centre for European Economic Research said a gauge of economic expectations ticked up to 7.2 points this month, up from 4.8 points a month earlier.
This week's key economic events include FOMC Meeting Minutes on Wednesday, Eurozone manufacturing and services PMI on Thursday, while on Friday the Office for National Statistics will unveil U.K.'s growth figures.