Eurozone To End Longest Ever Recession

The euro began the week slightly above $1.33 and traded at $1.3309 at 7:30 GMT on Monday morning. The common currency has been on a high as the eurozone claws its way out of its longest ever recession. Forecasts for the bloc's second quarter GDP look promising according to Bloomberg. The figures from a Bloomberg News Survey of 21 economists showed that GDP in the eurozone probably expanded 0.2 percent. If the growth is confirmed with official numbers, it will mark the first time the region has grown since 2011. In Spain hopeful figures emerged and showed that the nation's economy contracted just 0.1 percent in the second quarter and unemployment rates have slowly started to come down. Spanish Prime Minister Mariano Rajoy has been working to make it easier for companies to hire and negotiate contract terms as well as fire their employees, which has had a huge effect on the nation's jobless rates. Germany, which has been touted as the economy that will lead the eurozone out of its financial crisis, is also expected to have grown. The Economic Ministry predicted a 0.75 percent growth for the largest economy in the eurozone, which can be attributed to increased industrial production and private consumption. Moving forward investors will be waiting for the official GPD figures which are due out on August 14th. In the mean time, the European Central Bank is still in focus as the region prepares to implement a banking union with the central bank acting as a supervisor. The ECB is expected to start reviewing eurozone banks' balance sheets in early 2014, as EU policymakers will be voting on the legislation to move forward with the union in September.