US Q3 GDP Overview
Wednesday's US economic docket highlights the preliminary release of the Q3 GDP growth figures, scheduled to be published at 1330 GMT. The second version is expected to match the original estimate and come in to show an annualized growth rate of 3.5%.
Joseph Trevisani, FXStreet's own Senior Analyst explains: “One source of potential revision is international trade. The BEA includes a net import/export number in its GDP estimate with imports subtracting and exports adding to GDP. If imports were higher than the original forecast or exports lower that could drag down GDP, with the reverse true if imports were weaker and exports stronger.”
How could it affect EUR/USD?
Yohay Elam, Analyst at FXStreet writes: “Bulls may find some solace in the fact that the pair may enter oversold conditions, as the Relative Strength Index on the four-hour chart is flirting with 30. Momentum remains to the downside.”
He further adds, “1.1260 was a stepping stone on the way up in mid-November and is immediate support. 1.1215 was the trough this year and the lowest level since June 2017. It is a critical level and is now in sight. The next levels on the downside are 1.1110 and 1.10, dating back to early last year.”
Key Notes
• US GDP Preview: No revision to third quarter pace
• EUR/USD recovery to 1.1380 or new yearly lows at 1.1205? – Confluence Detector
• EUR/USD: Recovery remains capped below 1.1300 ahead of US GDP, Powell
About the 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 the USD, while a low reading is negative.
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