When is Eurozone Q4 Prelim flash GDP and how could it affect EUR/USD?

Eurozone Q4 Prelim flash GDP Overview

The first reading of the Eurozone fourth-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 Q4, while on an annualized basis, is expected to come in at 2.7% versus 2.6% booked last.

 How could affect EUR/USD?

On a better GDP print, the EUR bulls could regain control, pushing the EUR/USD pair back towards the 1.2400 mark. However, the spot could extend the drop to test the 1.23 handle on a downside surprise.   

In terms of technicals, “the pair's inability to move back above the 1.2400 handle, marking 23.6% Fibonacci retracement level of 1.1916-1.2538 recent upsurge could now be seen as initial signs of bullish exhaustion. The corrective slide, therefore, seems more likely to get extended towards 38.2% Fibonacci retracement level support near the 1.2300 round figure mark. On the upside, the 1.2390-1.2400 region might continue act as an immediate hurdle and is followed by resistance near the 1.2430 horizontal zone,” Haresh Menghani, Analyst at FXStreet explains.

Key notes

Eurozone growth to remain strong in Q4 at 0.6% q/q - HSBC

Eurozone GDP and German inflation figures amongst market movers today – Danske Bank

About Eurozone Q4 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).