When is the Eurozone Preliminary GDP and how could it affect EUR/USD?

Eurozone Preliminary GDP Overview

The second reading of the Eurozone fourth-quarter GDP figures is due for release later today at 1000 GMT.

The consensus amongst traders expects the bloc’s economic growth rate to drop by 0.7% inter-quarter in Q4 2020 while on an annualized basis, is expected to arrive at -5.1%.

At the same time, the German ZEW Business Survey drops in, with the headline Economic Sentiment Index is expected to fall to 59.5 in February as against a 61.8 reading booked in the previous month. Meanwhile, the Current Situation Sub-Index is likely to arrive at -67.0 versus a -66.4-figure recorded previously.     

 How could it affect EUR/USD?

An upward revision to the EZ growth numbers combined with an upbeat German ZEW survey could likely revive the bullish sentiment around the euro. The key hurdle at 1.2149 could be challenged once again. Should the macro data disappoint, the major could correct further to test the 1.2100 level.

The data release could set the tone for the EUR markets in the session ahead, as the US docket remains relatively dry welcoming the American traders from the extended weekend holiday.

Looking at it from a technical perspective, “Critical resistance awaits at 1.2150, which has capped EUR/USD on Tuesday and also last week – a double-top. Further above, 1.2190 and 1.2225 are eyed.  Some support is at the daily low of 1.2125, followed by 1.2080, a swing low from last week. A more significant cushion is at 1.2055,” FXStreet’s Senior Analyst Yohay Elam notes.

Key notes

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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).