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

Eurozone flash GDP Overview

Flash GDP figures in the Euro zone for the first quarter are due later today at 9GMT. Consensus amongst traders expect the bloc’s economic growth to remain steady at 0.5% inter-quarter in Q1, while on annualized basis, is also expected to remain unrevised at 1.7% as seen previously.

 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 above 1.1050 barrier. However, if the readings disappoint, the spot could reverse back below 1.10 handle.

However, the German ZEW surveys are also likely to have a significant impact on the spot, keeping a buoyant tone around the Euro should the headline numbers come in upbeat at 22.3 for May, as widely expected.

Key notes

EUR/USD returns to 1.10 area

Today, the German ZEW economic sentiment is expected to improve (expectations). As both equities and the economy continue to do well, a rise is likely. EMU Q1 GDP is expected to stay unrevised.

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).