When is the Eurozone GDP and how could it affect EUR/USD?

Dhwani Mehta FXStreet

Eurozone flash GDP Overview

The second reading of the Eurozone second-quarter GDP figures is due later today at 0900 GMT. The consensus amongst traders expects the bloc’s economic growth rate to remain steady at 2.0% inter-quarter in Q2 2021 while on an annualized basis, is also expected to remain unchanged at 13.7%.

How could affect EUR/USD?

EUR/USD is keeping its range near-daily lows of 1.1760 ahead of the Eurozone Employment and GDP data release, mainly weighed down by the risk-off mood-driven the US dollar’s strength.

In terms of technicals, “the recent bounce from the vicinity of YTD lows stalled near a short-term ascending trend-line breakpoint. The mentioned support-turned-resistance, around the 1.1800 mark, should now act as a key pivotal point for short-term traders. A sustained move beyond might trigger a short-covering move and lift the pair further beyond the 1.1830-35 region. On the flip side, the 1.1740-20 region might act as immediate support ahead of the 1.1700 mark. A convincing break below will reaffirm the bearish outlook and prompt some aggressive technical selling. The pair might then accelerate the fall towards intermediate support near the 1.1665-60 region en-route November 2020 lows, around the 1.1600 round figure,” FXStreet’s Analyst Haresh Menghani notes.

Key Notes

EUR/USD: Daily recommendations on major

US Retail Sales Preview: Dollar booster? Low expectations, market mood point to a clear reaction

EUR/USD moves toward 1.1750 ahead of key US, EU data

About Eurozone flash GDP

The Gross Domestic Product released by 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's 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.

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