When is the Eurozone flash GDP/ German ZEW and how could it affect EUR/USD?

Eurozone flash GDP/ German ZEW Overview

The second reading of the Eurozone first quarter GDP figures is due later today at 0900GMT. The consensus amongst traders expect the bloc’s economic growth to remain steady at 0.4% inter-quarter in Q1, while on an annualized basis, is also expected to remain unchanged at 2.5%.

The ZEW will release Germany’s Economic Sentiment Index for the next six months at the same time, as well as the Current Situation Index in the EU session, reflecting the institutional investors’ opinions.

The headline economic sentiment index is expected to steady at -8.2 in May while the current situation sub-index is like to drop to 86.2 versus 87.9 booked previously.

 How could affect EUR/USD?

On a positive surprise, the EUR bulls could regain poise, pushing the EUR/USD pair back above the 1.1950 mark. However, the spot could extend the drop below the 1.1900 support should the data disappoint.   

In terms of technicals, “On the topside, the Euro would run into offers again at 1.1975 ahead of another test of 1.1995/1.2000 and the 200 DMA at 1.2015. Above this, the next target would be at 1.2070 (38.2% of 1.2475/1.1822). The 4-hour charts look a bit heavy now though and the weeklies are also pointing lower, so if we get back below 1.1890/1900 then we could see a return to 1.1840 and to 1.1815/25, where the 55 WMA/December 12 low has so far propped the Euro up. A break would find minor bids at 1.1800, below which allows for a run towards 1.1785, beneath which there is little support to be seen ahead of 1.1700/10,” Jim Langlands at FX Charts explains.

Key notes

EUR/USD Forecast: corrective bounce already losing steam, EZ GDP and US retail sales eyed

Eurozone industrial production and German ZEW in focus – Nomura

About Eurozone 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).