TRENDING:

US NFP

GBP/USD

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

Haresh Menghani FXStreet

US Q1 GDP Overview

Thursday's US economic docket highlights the release of the final version of the US GDP report for the first quarter of 2019 and is scheduled to be published at 12:30 GMT. The economic growth in the January-March quarter is anticipated to match the preliminary estimate and hold steady at 3.1% annualized pace as compared to a 2.2% rise recorded in the last quarter of 2018.

Deviation impact on EUR/USD

Readers can find FX Street's proprietary deviation impact map of the event below. As observed the reaction on the pair, in case of a deviation by -0.82 likely to be around 24-pips in the first 15-minutes and could extend to 54-pips in the following 4-hours. Conversely, the reaction in case of positive deviation by 0.68 is likely to be in the range of 20-pips during the first 15-minutes, which could extend to 45-pips in the subsequent 4-hours.

How could it affect EUR/USD?

Ahead of the important release, Yohay Elam, Analyst at FXStreet offers important technical levels to trade the major – “1.1320 capped EUR/USD on its way up to current levels, and 1.1245 held it down beforehand. The next support line is 1.1180 which was a low point in mid-June.”

“Looking up, 1.1385 was a high point on Wednesday and is immediate resistance. It is followed by 1.1415 that was the peak this week and the highest since March. The next levels are 1.1445 and 1.1520,” he added further.

Key Notes

• US Q1 GDP Final Revision Preview: Look ahead not behind

• EUR/USD Forecast: On the verge of losing critical support after failing to rise on upbeat news

• EUR/USD Technical Analysis: The pair remains supported by the 200-day/week SMAs

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.

Author

Haresh Menghani

FXStreet

Haresh Menghani is a detail-oriented professional with 10+ years of extensive experience in analysing the global financial markets.

Markets move fast. We move first.

Orange Juice Newsletter brings you expert driven insights - not headlines. Every day on your inbox.

Editor's Picks

EUR/USD steadies near 1.1750 ahead of final Eurozone CPI amid fading USD recovery

The EUR/USD pair steadies around the 1.1750 area during the Asian session on Wednesday, and for now, seems to have stalled the previous day's sharp retracement slide from the highest level since September 24. Meanwhile, the fundamental backdrop remains tilted in favor of bullish traders and suggests that the path of least resistance for spot prices remains to the upside.

GBP/USD gains ground above 1.3400 on UK PMI optimism

The GBP/USD pair gains momentum to around 1.3425 during the early Asian session on Wednesday. The Pound Sterling edges higher against the Greenback on the upbeat UK preliminary S&P Global Purchasing Managers' Index data. Traders will take more cues from the Fedspeak later on Wednesday.

Gold advances to near seven-week highs amid US labor market cooling

Gold price extends its upside to near seven-week highs above $4,300 during the Asian trading hours on Wednesday. The precious metal gains momentum as the US labor market remains relatively resilient but shows signs of slowing. The mixed US employment report for November reinforces bets of further rate cuts by the US Federal Reserve and weighs on the US Dollar.

XRP dips as bearish pressure persists despite ETF growth

Ripple is finding footing above $1.90 at the time of writing on Tuesday after a bearish wave swept across the broader cryptocurrency market, building on persistent negative sentiment.

Ukraine-Russia in the spotlight once again

Since the start of the week, gold’s price has moved lower, but has yet to erase the gains made last week. In today’s report we intend to focus on the newest round of peace talks between Russia and Ukraine, whilst noting the release of the US Employment data later on day and end our report with an update in regards to the tensions brewing in Venezuela.

BNB Price Forecast: BNB slips below $855 as bearish on-chain signals and momentum indicators turn negative

BNB, formerly known as Binance Coin, continues to trade down around $855 at the time of writing on Tuesday, after a slight decline the previous day. Bearish sentiment further strengthens as BNB’s on-chain and derivatives data show rising retail activity.