Eurozone Prelim flash GDP estimate overview
At 1000 GMT, the first reading of the Eurozone third-quarter GDP figures will be reported. The consensus amongst traders expects the bloc’s economic growth to steady at 0.4% inter-quarter in Q3, while on an annualized basis, is expected to drop to 1.8% versus 2.1% booked last.
Deviation impact on EUR/USD
Readers can find FX Street's proprietary deviation impact map of the event below. As observed the reaction is likely to remain confined between 10 and 70 pips in deviations up to 4 to -2.5, although in some cases, if notable enough, a deviation can fuel movements of up to 120-130 pips.
How could affect EUR/USD?
From a technical perspective, upbeat Eurozone GDP figures could add extra legs to the EUR/USD bounce, fuelling a break above the 5-day EMA at 1.1397. A sustained move above the last could open doors for a test of 1.1422/23 (Oct 26 high/ 10-DMA) and 1.1479 (20-DMA).
On the flip side, a bigger-than-expected drop in the annualized reading could drag the spot back to the YTD lows of 1.1334, below which the next supports are aligned at 1.1300 (daily classic S3/ Aug lows) and 1.1250 (psychological levels).
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About Eurozone Q3 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).