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 0.2% inter-quarter in Q4 while on an annualized basis, is also expected to remain unchanged at 1.2%.
How could affect EUR/USD?
On a positive surprise, the EUR bulls could flex their muscles further, pushing the EUR/USD pair back through the 1.1300 mark. However, the spot could change the course and drop back towards the 1.1250 demand zone should the data disappoint.
In terms of technicals, “initial support is at 1.1260, around the initial two-month low seen early in the week. The fresh trough of 1.1248 is close by. 1.1215 was the lowest point in 2018 and significant support. The next lines date back to 2017: 1.1200 and 1.1115 are eyed. 1.1290 is the January low and is the immediate resistance line. Further up, Wednesday's peak at 1.1340 is the next cap. 1.1405 was a swing low several weeks ago and is also where the 200 SMA meets the chart,” FXStreet’s Analyst Yohay Elam notes.
Key Notes
Market themes of the Day: The Eurozone GDP and US retail sales in focus
German prelim GDP arrives at 0.0% in Q4 vs +0.1% expected
EUR futures: room for extra pullbacks
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).
Author
Dhwani Mehta
FXStreet
Residing in Mumbai (India), Dhwani is a Senior Analyst and Manager of the Asian session at FXStreet. She has over 10 years of experience in analyzing and covering the global financial markets, with specialization in Forex and commodities markets.
