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

Eurozone Q2 flash GDP Overview

The second reading of the Eurozone second quarter GDP figures are due later today at 0900GMT. 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 come in at 2.1%, same as that seen in the preliminary reading.

 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 towards 1.1800. However, if the readings disappoint, the spot could break below the 1.17 handle.

In terms of technicals, “any immediate up-move might now confront immediate resistance at 20-day SMA, near mid-1.1700s, above which the pair is likely to aim back towards the 1.1800 handle. 

On the flip side, any immediate dips might continue to find fresh buying interest near the 1.1700-1.1690 region, which if broken decisively is likely to accelerate the corrective slide towards 61.8% Fibonacci retracement level support near 1.1640 level before the pair eventually breaks below the 1.1600 handle and head towards testing its next support near mid-1.1500s,” Haresh Menghani, Analyst at FXStreet explains.

Key notes

Eurozone flash GDP: We expect the second reading to be unchanged at 0.6% q/q - HSBC

Eurozone: Expect confirmation that the economy grew 0.6% in 2Q17 - ING

About Eurozone 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).