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 the final version of the third quarter GDP growth figures, scheduled to be published at 13:30 GMT. The report is expected to confirm that the economic growth in the July-September quarter stood at 2.1% annualized pace, matching the Preliminary estimates and marking a modest uptick from the second quarter's final reading of 2.0%.

As Joseph Trevisani - FXStreet's own Analyst explains: "With the US headed for 2.4% growth this year, including the Atlanta Fed GDPNow estimate of 2.3% for the fourth quarter, 2020 will begin on a firm footing. As the safety trade to the dollar ebbs the greenback will need all the help it can get in the first quarter to maintain its levels. A stronger than expected expansion in the third quarter leading to the fourth would certainly help."

How could it affect EUR/USD?

Ahead of the important release, Valeria Bednarik, FXStreet's own Chief Analyst offered a brief technical outlook and important levels to trade the major: "The EUR/USD pair retains its neutral-to-bearish stance hovering around the 38.2% retracement of its December rally. In the 4-hour chart, a mild-bearish 20 SMA provides intraday resistance, while standing directionless within negative levels. The pair needs to leave the 1.1110/80 range to gain directional traction, something quite unlikely in the current scenario, although with more chances of a downward move than of a bullish breakout."

Key Notes

   •    US Third Quarter GDP Final Revision Preview: Stable heading into year end

   •    EUR/USD Forecast: Holiday’s mood kicked in

   •    EUR/USD dives to over 1-week lows, below 1.1100 handle ahead of US data

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.