When is the Eurozone Q1 Prelim flash GDP and how could it affect EUR/USD?

Eurozone Q1 Prelim flash GDP Overview

The first reading of the Eurozone first-quarter GDP figures is due later today at 0900 GMT. The consensus amongst traders expects the bloc’s economic growth to decelerate to 0.4% inter-quarter in Q1, while on an annualized basis, is expected to come in at 2.5% versus 2.7% booked last.

 How could affect EUR/USD?

On a positive surprise, the EUR bulls could extend control, pushing the EUR/USD pair back towards the 1.2070 resistance area. However, the spot could drop back below the 1.2000 levels on disappointing GDP figures.  

In terms of technicals, “yesterday's drop below the very important 200-day SMA support, for the first time since April 2017, and acceptance below the 1.20 key level, continues to suggest further downside. However, short-term oversold conditions, favors some recovery, especially if the Fed surprises with a dovish statement. Any meaningful recovery attempt is likely to confront some fresh supply near the 1.2060-70 region, above which the pair might aim towards reclaiming the 1.2100 handle. On the flip side, renewed selling pressure is likely to expose YTD lows near the 1.1915 region before the pair eventually drops to test 1.1870 horizontal support,” Haresh Menghani, Analyst at FXStreet explains.

Key Notes

Eurozone GDP and FOMC amongst market movers today – Danske Bank

European FX Outlook: The manufacturing PMI and Eurozone GDP headline

About Eurozone Q1 Prelim 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).