When is the Eurozone flash GDP and how could it affect EUR/USD?
|Eurozone flash GDP Overview
The second reading of the Eurozone fourth-quarter GDP figures is due later today at 1000GMT. The consensus amongst traders expects the bloc’s economic growth to remain steady at 0.6% inter-quarter in Q4, while on an annualized basis, is expected to arrive at 2.7% versus 2.6% booked last.
How could affect EUR/USD?
On a positive surprise, the EUR bulls could regain poise, pushing the EUR/USD pair back above the 1.2400 mark. However, the spot could extend the drop below the 1.2348 support should the data disappoint.
In terms of technicals, “The Euro has reached 1.2370, as we thought possible yesterday, and the 4-hour charts now look as though we could be in for further gains, which could see 1.2400/10, beyond which could head towards 1.2440/60. The dailies are still looking heavy though, and a decent US CPI will see a bid tone return to the dollar, allowing a return to 1.2280/00, below which would suggest a move back towards 1.2200/30. Overall, given the mixed nature of the charts look for further choppy trade within the recent range in the 1.2250/1.2450 area,” Jim Langlands at FX Charts explains.
Key Notes
EUR/USD Forecast: trending higher along a bullish channel, EZ GDP and US macro data in focus
European FX Outlook: All eyes on inflation as Money talk in Bundesbank symposium
About Eurozone flash GDP
The Gross Domestic Product released by the Eurostat is a measure of the total value of all goods and services produced by the Eurozone. The GDP is considered as a broad measure of the Eurozone economic activity and health. Usually, a rising trend has a positive effect on the EUR, while a falling trend is seen as negative (or bearish).
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