European session review: EUR depreciates after data show Eurozone's economy falls into double-dip recession in Q1

EUR eased against most of its major rivals in the European session on Friday, undermined by data, which showed that the Eurozone fell into a double-dip recession in Q1, as tougher restrictions were imposed to battle the third wave of Covid-19.

Eurostat reported that its preliminary estimate revealed that Eurozone's gross domestic product (GDP) shrank 0.6% q-o-q and 1.8% y-o-y in the first three months of this year, putting the region in a second technical recession in 12 months. Economists had expected declines of 0.8% q-o-q and 2.0% y-o-y. 

Meanwhile, another report from Eurostat showed that the jobless rate in the Eurozone fell unexpectedly to 8.1 percent in March from 8.2 percent in February. Economists had expected the rate to increase to 8.3 percent. The number of unemployed decreased by 209,000 from the previous month to 13.166 million in March.

Market participants also received flash consumer price data for the Eurozone, which showed that inflation in the euro area accelerated in April. Eurozone consumer price inflation rose to 1.6% y-o-y in April, the highest level since April 2019. Economists had expected the consumer price index (CPI) to rise 1.6% y-o-y, following a 1.3% y-o-y gain in March.