US Q1 GDP Overview
Thursday’s US economic docket highlights the third release of the Q1 GDP growth figures, scheduled to be published at 1230 GMT. The final print is expected to confirm the 2.2% annualized growth rate reported in the preliminary release but might still produce some meaningful trading opportunities.
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 is likely to be in the range of 25-30 pips in the first 15-minutes but could extend to 75-85 pips in the following 4-hours in case of a deviation between +0.68 to -0.89.
How could it affect EUR/USD?
Yohay Elam, FXStreet’s own Analyst explains: The significant support line to watch is at the June 15th, and 19th lows of 1.1540 and stronger support is at 1.1510 which is the lowest level since July 2017. Even lower, 1.1480 is notable for serving as an essential line last summer.
He further adds: 1.1650 capped the pair on several occasions during June. 1.1730 provided support when the EUR/USD traded on higher ground. 1.1850 that served as a high point on June 14th.
Key Notes
“¢ US: Data point to stronger growth in Q2 – Nomura
“¢ How to trade the US GDP with EUR/USD
“¢ EUR/USD a break below 1.15 is not ruled out – UOB
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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