When are the Eurozone Preliminary GDP and CPIs and how could they affect EUR/USD?
Eurozone Preliminary GDP and CPIs overview
At 1000 GMT, the first estimate of the Eurozone inflation and third-quarter GDP figures will be reported.
The consensus amongst traders expects the bloc’s economic growth to come in a tad weaker at 0.1% inter-quarter in Q3, while on an annualized basis, is expected to arrive at 1.1%.
Meanwhile, the headline CPI is anticipated to drop to 0.7% YoY in Oct, compared to 0.8% growth seen previously while the core inflation is seen lower at 1.0% YoY during the reported month vs. 1.0% last.
How could affect EUR/USD?
At the press time, the EUR/USD pair keeps its upside consolidation phase intact near weekly highs of 1.1171, but the bulls lack vigor amid poor German Retail Sales data and ahead of the Eurozone economic releases.
From a technical perspective, a positive surprise in both the Eurozone GDP and CPI data could offer fresh impetus to the bulls and drive the EUR/USD pair back towards the 1.12 handle. A break above the last could open doors for a test of the August highs at 1.1251. On the flip side, disappointing numbers could drag the spot back towards the 100-DMA, placed at 1.1125.
The reaction to the macro news could be limited, as the sentiment around the US dollar remains the main market driver so far this Thursday, following the latest Fed rate cut and ongoing trade developments.
Key Notes
Eurozone inflation and growth numbers to headline – Danske Bank
Euro-zone GDP and inflation preview: Dual slowdown set to depress EUR/USD
EUR/USD path of least resistance is up after the Fed – Confluence Detector
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).
About Eurozone Preliminary CPIs
The Euro Zone CPI released by the Eurostat captures the changes in the price of goods and services. The CPI is a significant way to measure changes in purchasing trends and inflation in the Euro Zone. Generally, a high reading anticipates a hawkish attitude which will be positive (or bullish) for the EUR, while a low reading is seen as negative (or bearish).