When is the German Prelim GDP and how could it affect the EUR/USD?
|German Preliminary GDP overview
The preliminary reading of Germany's Gross Domestic Product (GDP) is slated for release on Tuesday at 06:00 GMT.
Market forecasts are calling for a slight expansion in the headline quarter-on-quarter figure, from last quarter's 0.3% to the current period's 0.4%. A jump in the year-on-year figure from 1.6% to 2.5% is also expected.
How could it affect the EUR/USD?
A better-than-expected expansion in the GDP figures for Europe's economic power-house could provide extra legs to the ongoing corrective upside to the EUR/USD pair.
“Technically, the intraday recovery seemed a due correction on profit-taking, given that in the 4 hours chart, technical indicators advanced just to erase extreme oversold conditions, but lost their upward strength afterward, now back signaling additional declines ahead. In the same chart, the 20 SMA maintains its vertical bearish slope, now at around 1.1480. A downward acceleration through the daily low will likely result in an approach to the 1.1300 figure, while spikes up to 1.1450 will probably continue attracting selling interest. Support levels: 1.1360 1.1330 1.1300. Resistance levels: 1.1420 1.1450 1.1485,” FXStreet’s Chief Analyst Valeria Bednarik writes.
Key Notes
EUR/USD: Euro may have found the bottom of the downtrend
EUR/USD put value highest since April 24, 2017
About German Preliminary GDP
The Gross Domestic Product released by the Statistisches Bundesamt Deutschland is a measure of the total value of all goods and services produced by Germany. The GDP is considered as a broad measure of the German economic activity and health. A high reading or a better than expected number has a positive effect on the EUR, while a falling trend is seen as negative (or bearish).
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