US Q2 GDP Overview
Thursday's US economic docket highlights the releases of the final Q1 GDP print, scheduled at 12:30 GMT. The final estimate is expected to match the preliminary release and confirm that the world's largest economy expanded by 6.6% during the April-June period. Although backwards-looking, the report will provide an insight into how much momentum the US economy had then or whether the momentum is already starting to slow. This, in turn, will set the tone going into the final quarter of the year.
How Could it Affect EUR/USD?
The data is unlikely to derail expectations about an early policy tightening by the Fed or affect the US dollar bulls. A stronger than expected reading will reinforce speculations and continue acting as a tailwind for the buck. Conversely, a downward revision – though unlikely – might prompt some profit-taking around the greenback and provide a modest lift to the EUR/USD pair. That said, any immediate market reaction is more likely to be short-lived, suggesting that the path of least resistance for the pair remains to the downside.
Meanwhile, Yohay Elam, Analyst at FXStreet offered a brief technical outlook for the major: “Euro/dollar is oversold according to the Relative Strength Index (RSI) on the four-hour chart, which is significantly below 30. That indicates a bounce. Other indicators such as Simple Moving Averages (SMAs) are bearish.”
Yohay further provided important technical levels to trade the pair: “Immediate support awaits at 1.1590, which was Wednesday's trough, and the lowest since November 2020. It is followed by 1.1550 and 1.15, levels recorded a year ago. Some resistance is at the daily high of 1.1610, followed by 1.11660, which cushioned EUR/USD before the collapse. The next lines to watch are 1.1680 and 1.17.”
Key Notes
• EUR/USD Forecast: Bounce, then fresh fall? How the last day of Q3 could unfold
• EUR/USD regains some composure around 1.1600, looks to data
• EUR/USD Price Analysis: Charting a bear flag but oversold conditions warrant caution
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 the USD, 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.
Recommended content
Editors’ Picks
EUR/USD consolidates weekly gains above 1.1150
EUR/USD moves up and down in a narrow channel slightly above 1.1150 on Friday. In the absence of high-tier macroeconomic data releases, comments from central bank officials and the risk mood could drive the pair's action heading into the weekend.
GBP/USD stabilizes near 1.3300, looks to post strong weekly gains
GBP/USD trades modestly higher on the day near 1.3300, supported by the upbeat UK Retail Sales data for August. The pair remains on track to end the week, which featured Fed and BoE policy decisions, with strong gains.
Gold extends rally to new record-high above $2,610
Gold (XAU/USD) preserves its bullish momentum and trades at a new all-time high above $2,610 on Friday. Heightened expectations that global central banks will follow the Fed in easing policy and slashing rates lift XAU/USD.
Week ahead – SNB to cut again, RBA to stand pat, PCE inflation also on tap
SNB is expected to ease for third time; might cut by 50bps. RBA to hold rates but could turn less hawkish as CPI falls. After inaugural Fed cut, attention turns to PCE inflation.
Bank of Japan set to keep rates on hold after July’s hike shocked markets
The Bank of Japan is expected to keep its short-term interest rate target between 0.15% and 0.25% on Friday, following the conclusion of its two-day monetary policy review. The decision is set to be announced during the early Asian session.
Moneta Markets review 2024: All you need to know
VERIFIED In this review, the FXStreet team provides an independent and thorough analysis based on direct testing and real experiences with Moneta Markets – an excellent broker for novice to intermediate forex traders who want to broaden their knowledge base.