US Q3 GDP Overview
Thursday's US economic docket highlights the release of the Final GDP print for the third quarter, scheduled at 13:30 GMT. The third revision is expected to show that the world's largest economy grew 2.9% annualized pace during the July-September period, matching the previous estimates.
How Could it Affect EUR/USD?
Ahead of the key release, the US Dollar comes under some renewed selling pressure amid retreating US Treasury bond yields and assists the EUR/USD pair to regain some positive traction on Thursday. That said, a modest pullback in the US equity futures lends some support to the safe-haven buck and keeps a lid on any meaningful upside for the major.
Meanwhile, the backwards-looking data might do little to influence market expectations about the Fed's next policy move or provide any meaningful impetus to the greenback. That said, an upward revision of the US GDP print could revive bets for a prolonged policy tightening by the Fed and prompt some near-term short-covering around the USD.
Conversely, a weaker-than-expected reading will be enough to reaffirm bets that the US central bank will pivot from an ultra-hawkish stance to something more hawkish. This will be enough to exert additional downward pressure on the buck and allow the EUR/USD pair to push through a one-week-old trading range hurdle near the 1.0660 area.
Eren Sengezer, Editor at FXStreet, offers a brief technical outlook for the major and writes: “EUR/USD near-term technical outlook points to a slightly bullish bias with the pair holding above the 20-period and the 50-period Simple Moving Averages (SMA) on the four-hour chart. Additionally, the Relative Strength Index indicator on the same chart stays above 50.”
Eren also outlines important levels to trade the EUR/USD pair: “1.0680 (end-point of the latest uptrend, static level) aligns as first resistance before 1.0700 (psychological level) and 1.0735 (December 15 high).”
“On the downside, first support is located at 1.0620 (20-period SMA, 50-period SMA) ahead of 1.0580 (Fibonacci 23.6% retracement) and 1.0560 (100-period SMA),” Eren adds further.
• EUR/USD Forecast: Risk perception to drive the pair's action
• EUR/USD edges higher amid weaker USD, upside remains capped near 1.0660 area
• EUR/USD defends channel support above 1.0600 amid renewed US Dollar selling
About US GDP
The Gross Domestic Product Annualized released by the US Bureau of Economic Analysis shows the monetary value of all the goods, services and structures produced within a country in a given period of time. GDP Annualized is a gross measure of market activity because it indicates the pace at which a country's economy is growing or decreasing. Generally speaking, a high reading or a better than expected number is seen as positive for equities, while a low reading is negative.
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. The author will not be held responsible for information that is found at the end of links posted on this page.
If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.
FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.
The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.
Follow us on Telegram
Stay updated of all the news
EUR/USD rises toward 1.0800 as USD weakens
EUR/USD has gained traction and advanced toward 1.0800 in the early American session on Monday. The positive opening witnessed in Wall Street makes it difficult for the US Dollar to find demand and helps the pair continue to push higher.
GBP/USD closes in on 1.2300 as mood improves
GBP/USD has preserved its bullish momentum and advanced to the 1.2300 area in the second half of the day on Monday. The risk positive market atmosphere makes it difficult for the US Dollar to stay resilient against its rivals and fuels the pair's daily rally. Eyes on BOE Governor Bailey's speech.
Gold: XAU/USD pared losses and consolidates around $1,950.00 Premium
Spot gold trades in the $1,950 price zone, sharply down on Monday as investors move away from safe-haven assets. The sentiment is positive at the start of the week amid easing concerns related to a global banking crisis.
Four reasons why SUSHI holders will have a bullish week despite SEC's move
SushiSwap price undid the early March gains in the last week after the SEC subpoenaed the platform’s head chef Jared Grey. As a result of this announcement, the token collapsed by roughly 18%.
Alibaba (BABA) edges higher after Jack Ma returns to China for AI talk
BABA shareholders begin the week with a glimmer of hope after founder Jack Ma was seen visiting China after spending more than one year abroad. The report originally led to Alibaba's shares in Hong Kong rising 4% before subsiding.