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.

USD/JPY extends sell-off below 157.00 on hawkish BoJ repricing

USD/JPY extends sell-off below 157.00 in European trading on Thursday. Traders react negatively to the weak US ADP report, smashing the US Dollar across the board and exerting renewed selling pressure on the pair. Meanwhile, hawkish BoJ expectations and intervention risks continue to lend support to the Japanese Yen, rendering it negative for the major.

AUD/USD ranges above 0.7150 despite upbeat Chinese PMI

AUD/USD struggles to capitalize on the previous day's bounce from a nearly two-week low and ranges above 0.7150 in Asia on Thursday, as dismal Australian trade data counter upbeat China's RatingDog Services PMI. However, the pair's upside remains in check as the US Dollar stalls the weak ADP report-led slide amid escalating US-Iran tensions and firming September Fed rate-hike bets.

Gold sticks to gains below $4,450 amid weaker USD

Gold maintains its bid tone heading into the European session, though it remains below $4,450 amid mixed fundamental cues. Sliding US bond yields and Wednesday's soft US ADP report weigh on the US Dollar, assisting the commodity build on the previous day's goodish recovery from a nearly four-week low. That said, firming US Federal Reserve rate-hike expectations and inflation risks stemming from higher energy prices could act as a tailwind for US bond yields.

XRP defends key support, XLM awaits breakout as derivatives strengthen

Ripple (XRP) and Stellar (XLM) show divergent technical outlooks as traders assess whether the recent weakness could give way to a recovery. XRP is finding support and defining a key support zone, while XLM slips below a cluster of Exponential Moving Averages (EMAs).

Ripple defends key support; Stellar awaits breakout as derivatives strengthen

Ripple and Stellar show divergent technical outlooks as traders assess whether the recent weakness could give way to a recovery. XRP is finding support and defining a key support zone, while XLM slips below a cluster of Exponential Moving Averages.

Diesel’s record $100 warning: The oil shock hiding in plain sight

The Oil market may look calmer than it did a few months ago, but diesel is sending a very different message. The US diesel crack spread, the premium of ultra-low sulphur diesel futures over WTI, recently surged above $100 per barrel for the first time, reaching an intraday record of just over $102.00.