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

Dhwani Mehta FXStreet

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).

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.

EUR/USD remains on the back foot near 1.1750

EUR/USD is coming under renewed pressure, sliding towards multi-week lows in the mid-1.1700s on Thursday. The move lower reflects another strong session for the US Dollar, with the Greenback drawing fresh support from a batch of firm US data that reinforced its underlying bid.

GBP/USD drops further, hovers around 1.3460

GBP/USD is sliding in tandem with its risk-sensitive peers, drifting back towards the 1.3440 area, its lowest levels in around four weeks. The move reflects a firmer Greenback, supported by another round of solid US data, while a somewhat divided FOMC Minutes has added an extra layer of uncertainty around the Fed’s rate path, keeping Cable on the defensive.

Gold struggles to overcome $5,000

Gold is trading with humble gains on Thursday, hovering around the key $5,000 mark per troy ounce. The yellow metal remains underpinned by renewed geopolitical tensions in the Middle East, even as a stronger US Dollar and rising US Treasury yields across the curve limit the upside and keep price action relatively contained.

Ripple slips toward $1.40 despite SG-FORGE tapping protocol for EUR CoinVertible

XRP extends its decline, nearing $1.40 support, as risk appetite fades in the broader market. SG-FORGE’s EUR CoinVertible launches on the XRP Ledger, leveraging the blockchain’s scalability, speed, security, and decentralization.

Hawkish Fed minutes and a market finding its footing

It was green across the board for US Stock market indexes at the close on Wednesday, with most S&P 500 names ending higher, adding 38 points (0.6%) to 6,881 overall. At the GICS sector level, energy led gains, followed by technology and consumer discretionary, while utilities and real estate posted the largest losses.

Injective token surges over 13% following the approval of the mainnet upgrade proposal

Injective price rallies over 13% on Thursday after the network confirmed the approval of its IIP-619 proposal. The green light for the mainnet upgrade has boosted traders’ sentiment, as the upgrade aims to scale Injective’s real-time Ethereum Virtual Machine architecture and enhance its capabilities to support next-generation payments.