When is the US GDP report and how could it affect EUR/USD?

US Q3 GDP Overview

Friday's US economic docket highlights the release of advance US Q3 GDP growth figures, scheduled to be published at 1230 GMT. The economic growth in the July-September quarter is anticipated to have moderated to 3.3% annualized pace as compared to 4.2% growth recorded in the previous quarter.

Analysts at Wells Fargo offered a sneak peek at what to expect from today’s third-quarter US advance GDP report and wrote: “After rising at a robust 4.2% annualized rate in Q2, we look for Q3 GDP growth to clock in at a more moderate 3.3% annualized rate, as some components supporting the breakneck Q2 pace should pullback in Q3.”

Deviation impact on EUR/USD

Readers can find FX Street's proprietary deviation impact map of the event below. As observed the reaction on the pair, in case of a deviation between -0.88 to +0.68, is likely to be in the range of 27-28 pips in the first 15-minutes and could extend to 72-83 pips in the following 4-hours. 

How could it affect EUR/USD?

Yohay Elam, FXStreet's own Analyst explains: “The EUR/USD is suffering from downside Momentum while the Relative Strength Index on the four-hour chart is low, but above 30, thus not in the oversold territory just yet. The picture is quite bearish. The mid-August and 2018 trough of 1.1300 is a critical downside level. Further down, we are back to levels last visited in the summer of 2017. The confluence detector shows that 1.1240 is a level of interest.”

“On the topside, we find 1.1395 as an initial line of resistance. It is followed by 1.1430 which capped the pair on Thursday and also served as support earlier in October. Further up, 1.1460 supported the pair twice in early October, he added further.”

Key Notes

   •  US GDP Preview - 4% Here We Come?

   •  EUR/USD on the edge of a cliff and losing it open the door to a free-fall – Confluence Detector

   •  EUR/USD Technical Analysis: Remains negative and targets YTD low at 1.1299

About the US GDP

The Gross Domestic Product Annualized released by the US Bureau of Economic Analysis shows the monetary value of all the goods, services and structures produced within a country in a given period of time. GDP Annualized is a gross measure of market activity because it indicates the pace at which a country's economy is growing or decreasing. Generally speaking, a high reading or a better than expected number is seen as positive for the USD, while a low reading is negative.