European GDP for the second quarter of 2008 was slightly negative with a drop of 0.2 percent from the first quarter.
The ECB is now supported in their decision to stay flat on the interest rate horizon. Inflation worries still remain, but with growth actually coming in negative, the real balancing begins.
The Euro weakened across the board and is now sitting in deeply oversold levels against most of the majors. Sentiment says that the fall of the Euro is overdone for the time being, so look for a bounce before further declines.