EURUSD Over 11700 as we await US GDP
|EURUSD, H1
The first release on Q2 GDP is out later and could reveal a 3.0% (median consensus is 2.5%) headline for the quarter following a 1.4% pace in Q1. Consumption looks poised for stronger growth during the quarter and we expect a 3.0% clip, up from 1.1% in Q1 and inventories should help lift the headline after a $47.0 bln subtraction last quarter. This release will also include annual revisions to previously reported figures. USD has weakened again this morning and the data at 12:30 GMT will be critical for closing positons this week.
EURUSD has regained and held 1.1700 this morning helped by positive Eurozone ESI economic confidence that unexpectedly improved to 111.2 in July from 111.1 in the previous month and a raft of positive German state inflation data. Two of the heavyweights among the German states, Bavaria and NRW reported an unexpected uptick in the annual rate of 0.2% points, while headline rates were broadly steady in the other states. The data points to an upside surprise in the German HICP rate, which was expected to remain steady at 1.5% y/y, but could nudge higher to 1.6% y/y. The Spanish HICP rate already nudged higher unexpectedly, while the French reading remained unchanged, so on balance this could also mean an uptick in the overall Eurozone number, out next week. Today’s data adds to pressure on the ECB to discuss tapering when the QE schedule for next year is being discussed in (as we now expect) September.
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.