When is the Eurozone flash GDP and how could it affect EUR/USD?
Eurozone Q3 flash GDP Overview
The second reading of the Eurozone third quarter GDP figures is due later today at 1000GMT. The consensus amongst traders expects the bloc’s economic growth to remain steady at 0.6% inter-quarter in Q3, while on an annualized basis, is expected to come in at 2.5%, same as that seen in the preliminary readout.
How could affect EUR/USD?
On a better GDP print, we could see a fresh bout of buying interest around the euro, pushing the EUR/USD pair back towards 1.1700. However, the data release could play a second fiddle to the ECB President Draghi’s speech due at the same time. Draghi’s remarks on the monetary policy and economy will be closely eyed for the next direction.
In terms of technicals, “With short-term technical indicators unable to move out of the bearish territory, the pair seems more likely to confront stiff resistance near the 1.1700 handle. Even if it manages to clear this immediate hurdle, any subsequent up-move is likely to be capped at an important confluence resistance near the 1.1730-40 region, comprising of 100-day SMA and a short-term descending trend-line. Conversely, a rejection slide from the current resistance zone, leading to a subsequent drop below 1.1640-35 support, could drag the pair back towards the 1.1600 handle,” Haresh Menghani, Analyst at FXStreet explains.
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About Eurozone Q3 flash GDP
The Gross Domestic Product released by the Eurostat is a measure of the total value of all goods and services produced by the Eurozone. The GDP is considered as a broad measure of the Eurozone economic activity and health. Usually, a rising trend has a positive effect on the EUR, while a falling trend is seen as negative (or bearish).