When is Eurozone Q2 flash GDP and how could it affect EUR/USD?

Eurozone prelim Q2 flash GDP Overview

Advanced GDP figures in the Euro zone for the second quarter are due later today. Consensus amongst traders expect the bloc’s economic growth to remain steady at 0.6% inter-quarter in Q2, while on annualized basis, is expected to tick higher to 2.1% versus 1.9% growth seen previously.

 How could affect EUR/USD?

On a better GDP print, we could see a fresh bout of buying interest around the euro, pushing the EUR/USD pair back beyond 2-1/2 year tops of 1.1845. However, if the readings disappoint, the spot could surrender the 1.18 handle.

“Technically, the pair has confirmed a fresh bullish break out from a short-term ascending trend-channel and hence, remains poised to extend the near-term upward trajectory. However, with short-term indicators pointing to slightly near-term overbought conditions, bulls are likely to take breather 1.1850-60 resistance area. On the flip side, any profit-taking slide below the 1.1800 handle now seems to find support near the trend-channel breakout region, around 1.1780 level. A convincing break below the mentioned supports could extend the corrective fall towards 1.1735 horizontal support en-route the 1.1700 handle,” Haresh Menghani, Analyst at FXStreet explains.

Key notes

Eurozone Q2 flash GDP preview - HSBC

Eurozone: 2Q GDP estimated to grow at 0.5% q/q – Danske Bank

About Eurozone prelim Q2 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).