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 the bloc’s economy to contract 1.2% inter-quarter in Q4 2020 while on an annualized basis, is also expected to shrink by 5.4%.

How could it affect EUR/USD?

An upside surprise to the EZ growth numbers could revive the recovery momentum from near two-month lows of 1.2054, which drive EUR/USD back above 1.2100. However, the bears could regain control should the data disappoint, with 1.2000 on the sellers’ radar.

EUR/USD’s reaction to the data could be short-lived, as the sentiment around the greenback could mainly influence the pair.

Looking at it from a technical perspective, “a sustained break below the 1.2060-50 important support will shift the near-term bias in favor of bearish traders. The pair might then accelerate the slide further towards the key 1.2000 psychological mark. On the flip side, momentum back above the 1.2100 mark might now confront immediate resistance near the 1.2135-40 region,” Haresh Menghani, FXStreet’s Analyst noted.

Key Notes

EUR/USD: Recovery remains capped below 1.2100 ahead of Eurozone GDP

EU's Von der Leyen: 300M doses of Pfizer, Moderna and Astrazeneca coming in Europe in Q2

EUR/GBP Price Analysis: Struggles to regain traction above 0.8800

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).