Eurozone Preliminary GDP Overview
The second reading of the Eurozone third-quarter GDP figures is due for release later today at 1000 GMT.
The consensus amongst traders expects the bloc’s economic growth rate to remain steady at 12.7% inter-quarter in Q3 2020 while on an annualized basis, is also expected to remain unchanged at -4.3%.
How could it affect EUR/USD?
An upward revision to the EZ growth numbers is likely to rescue the EUR bulls, which could propel a bounce in EUR/USD back towards 1.1850 levels. However, the bears could extend their control and drive the major towards Thursday’s low of 1.1758 on a data disappointment.
EUR/USD’s reaction to the data could be short-lived, as the coronavirus concerns dominate the market sentiment amid a record rise in daily cases reported on both sides of the Atlantic.
Looking at it from a technical perspective, “EURUSD holding resistance at 1.1810/20 targets 1.1790/90, perhaps as far as support at 1.1750/1.1745 for profit taking on any remaining shorts. Be ready to sell a break below 1.1740 for 1.1725/20 & 1.1700/90. A break above 1.1830 is a buy signal targeting 1.1850/55, perhaps as far as 1.1880,” Jason Sen at DayTradeIdeas.com noted.
Key Notes
Forex Today: Covid concerns dominate Friday the 13th, EZ GDP, US consumer sentiment eyed
EUR/USD remains side-lined within 1.1720-1.880 – UOB
ECB’s Muller: Second virus wave probably stronger than expected
About Eurozone Preliminary 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).
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