US Q3 GDP Overview
Wednesday's US economic docket highlights the release of Preliminary (revised) US Q3 GDP growth figures, scheduled to be published at 13:30 GMT. The second estimate is anticipated to show that the economic growth in the July-September quarter stood at 1.7% annualized pace, slightly higher as compared to the advance estimate of 1.6%. Nevertheless, the reading will still mark a further deceleration from the first quarter's final print of 3.1% and 2.0% growth recorded in the previous quarter.
As Joseph Trevisani - FXStreet's own Analyst explained: “The Commerce Department’s quarterly services survey or QSS, issued on November 19th implied stronger consumption growth in the quarter than the BEA had assumed when it complied the advanced GDP estimate. The government assumed last month that spending in the service sector grew at a 2.9% annualized rate last quarter. But the QSS suggests consumption growth on the order of 3.0% to 3.2%. If that proves accurate it could raise GDP as high as 2.3%.”
How could it affect EUR/USD?
Ahead of the important release, Yohay Elam, Analyst at FXStreet provided important technical levels to trade the EUR/USD pair – “Support awaits at 1.10, a round number, and then by 1.0990, which is the low point in November. Further down, 1.0925 was a double bottom in September and 1.0879 is the 2019 low.
Looking up, some resistance awaits at 1.1035, the weekly high. It is closely followed by the double-bottom of 1.1050, and then by 1.11, another round number and last week's high. Next, we find 1.1130 and 1.1180, Yohay added further.
Key Notes
• US Q3 GDP Second Estimate Preview: Stronger than predicted US growth
• EUR/USD Forecast: Pre-Black Friday volatility likely amid a data-packed day
• EUR/USD remains under pressure near 1.10, focus on US docke
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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