US Q1 GDP Overview
Thursday's US economic docket highlights the release of the Preliminary GDP print for the first quarter, scheduled at 12:30 GMT. The second estimate is expected to show that growth in the world's largest economy contracted by 1.4% annualized pace during the January-March period as against the advance estimate pointing to a 1.4% decline.
How Could it Affect EUR/USD?
The backwards-looking data is unlikely to provide any meaningful impetus amid the worsening outlook for the global economy. Moreover, the markets have fully priced in a 50 bps at the next two FOMC meetings, suggesting that any reaction to the data is more likely to be short-lived. That said, a significant divergence from the expected numbers might still infuse some volatility, which, in turn, should influence the USD price dynamics and produce short-term trading opportunities around the EUR/USD pair.
Eren Sengezer, Editor at FXStreet, offered a brief technical outlook for the major: “EUR/USD is likely to continue to fluctuate within the 1.0740 (the end of the latest uptrend)-1.0630 (200-period SMA on the four-hour chart) range in the near term. The next significant action could be triggered once the pair breaks out of this channel..”
Eren also outlined important levels to trade the EUR/USD pair: “With a drop below 1.0630, EUR/USD could push lower toward 1.0600 (Fibonacci 38.2% retracement) and 1.0570 (50-period SMA). On the flip side, 1.0700 (psychological level) aligns as interim resistance ahead of 1.0740. A daily close above the latter could be seen as a significant bullish development and open the door for additional gains toward 1.0800 (psychological level).”
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.