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

Eurozone Preliminary GDP Overview

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

The consensus amongst traders expects Eurozone's economic growth rate to rise by 0.3% inter-quarter in Q4 2020 vs. a 2.2% expansion reported in the previous quarter.

On an annualized basis, the bloc’s GDP rate is expected to arrive at 4.7%. vs. 3.9% booked in Q3 2021.

How could it affect EUR/USD?

Upbeat the EZ growth numbers could help accelerate the recovery in the euro. The key hurdle at 1.1200 could be challenged once again. Should the macro data disappoint, the major could resume its downtrend towards 1.1100.

The data release could set the tone for the EUR markets in the session ahead, as the US docket remains devoid of top-tier macros news this Monday.

Looking at it from a technical perspective, “EUR/USD bulls approach a convergence of the last year’s low marked in December 2021 and 61.8% Fibonacci retracement (Fibo.) of the pair’s 2017-18 advances, near 1.1185, as RSI bounces from the oversold territory. If the pair manages to cross the 1.1185 resistance confluence, the corrective pullback could eye the 50-DMA level near 1.1300. Alternatively, a downward sloping trend line from March 2021, near 1.1030, will lure the EUR/USD bears on breaking the recent multi-day bottom around 1.1120.,” FXStreet’s Analyst Anil Panchal notes.

Key notes

Forex Today: Dollar bulls take a breather amid a quiet start to a Big week

EUR/GBP stays pressured near 23-month low as traders await ECB, BOE

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).