EUR/USD Steady as Germany Q4 GDP Confirmed at 0.3% Q/Q Growth

EUR/USD remains supported as Germany's final Q4 GDP reading confirmed the preliminary estimate of 0.3% quarter-over-quarter growth, marking a notable recovery from the prior quarter's flat 0.0% reading. On a year-over-year basis, GDP growth held steady at 0.4%, also matching preliminary figures. The German economy's gradual recovery is being attributed to two key drivers: expansionary fiscal policies from the German government and the European Central Bank's ongoing rate-cutting cycle, both of which have helped stimulate domestic demand and investment. Forward-looking indicators suggest this momentum is likely to carry into Q1, supported by strong incoming economic data, though a potential downturn in March data could temper expectations. For EUR traders, the confirmed GDP figures reinforce a narrative of eurozone economic stabilization, which may provide a floor for the single currency. Key levels to watch on EUR/USD will be influenced by upcoming eurozone PMI data and any shifts in ECB rate expectations. Traders should monitor whether this recovery trend broadens across other major eurozone economies.