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

US Q1 GDP Overview

Wednesday's US economic docket highlights the preliminary release of the Q2 GDP growth figures, scheduled to be published at 1230 GMT. The second version is expected to be revised slightly lower to show an annualized growth rate of 4.0%, down from 4.1% estimated earlier. 

Analysts at Nomura offered a sneak peek at what to expect from today’s second-quarter US prelim GDP report and wrote: “Incoming data since the BEA's advance estimate reaffirmed strong growth in Q2. Data on business equipment spending, changes in private inventories, and both imports and exports were slightly weaker than the BEA's advance estimates, but advance Quarterly Services Survey suggest slightly better consumer spending on services and business investment in intellectual properties during the quarter.”

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: “1.1750 was a quadruple top in July and is a key level of resistance. 1.795 capped the pair early in July. 1.1850 was a swing high in mid-June.”

“1.1665 separated ranges in August. Further down, 1.1595 was a stepping stone on the way up. 1.1540 cushioned the pair before the recent rise,” he adds further.

Key Notes

   •  US GDP Preview: A minor downgrade will not deter the Fed, export component is key

   •  EUR/USD tumbles to lows near 1.1675, US GDP eyed

   •  EUR/USD Forecast: 3 reasons for the fall, only a healthy correction for now

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.