When is the final US Q3 GDP report and how could it affect EUR/USD?

US Q3 GDP Overview

Wednesday's US economic docket highlights the releases of the final Q3 GDP print, scheduled at 13:30 GMT. The final estimate is expected to match the preliminary release and confirm that the world's largest economy expanded by 2.1% annualized pace during the July-September period.

How Could it Affect EUR/USD?

The backward-looking report is unlikely to provide any impetus as the market focus remains on developments surrounding the coronavirus saga. That said, any significant revision could move the US dollar and produce some meaningful trading opportunities around the EUR/USD pair. The market reaction, however, is likely to remain limited amid relatively thin liquidity conditions heading into the year-end holiday season.

Meanwhile, Eren Sengezer, Editor at FXStreet, offered a brief technical outlook for the EUR/USD pair: “The Relative Strength Index (RSI) indicator on the daily chart returned to 50 early Wednesday, pointing to the pair's indecisiveness in the near term.”

Eren further provided important technical levels to trade the major: “Currently, EUR/USD is testing the static support that is located at 1.1270 and if a four-hour candle closes below that level, additional losses toward 1.1240, the next static level, could be witnessed. 1.1200 (psychological level) aligns as the next target on the downside but an extended decline toward that support is unlikely unless fueled by a fundamental driver.”

“On the upside, key resistance aligns at 1.1295/1.1300 (100-period SMA, psychological level, upper limit of the current trading range) before 1.1320 (static level) and 1.1330 (200-period SMA),” he added further.

Key Notes

   •  EUR/USD Forecast: Bears to retain control as euro fails to clear key hurdle

   •  Morgan Stanley slashes 2022 US GDP forecast from 4.9% to 4.6%

   •  EUR/USD nudges above 1.1300 amid subdued holiday trading conditions

About US GDP

The Gross Domestic Product Annualized released by the US Bureau of Economic Analysis shows the monetary value of all the goods, services and structures produced within a country in a given period of time. GDP Annualized is a gross measure of market activity because it indicates the pace at which a country's economy is growing or decreasing. Generally speaking, a high reading or a better than expected number is seen as positive for equities, while a low reading is negative.