US Final GDP is a key release and is published each quarter.
USDJPY Tests Key Resistance Ahead of NFP - Forex Forecast for January 9, 2020
GDP reports measure production and growth of the economy, and are considered by analysts as one the most important indicators of economic activity. A reading which is higher than the market forecast is bullish for the dollar.
Here are all the details, and 5 possible outcomes for EUR/USD.
Published on Friday at 12:30 GMT.
Final GDP is the final of three GDP versions. Traders should pay close attention to the GDP release, as an unexpected reading could quickly affect the direction of EUR/USD.
US Preliminary GDP posted a gain of 1.0% in Q4, well above the estimate of 0.4%.
Final GDP for Q4 also stands at 1.0%.
Sentiments and levels
The ECB remains dovish, but recent statements by Fed policymakers have been hawkish, calling for a rate hike as early as April. So, the overall sentiment is bearish on EUR/USD towards this release.
Technical levels, from top to bottom: 1.1373, 1.13, 1.1220, 1.1140, 1.1070 and 1.10.
- Within expectations: 0.7% to 1.3%: In such a scenario, EUR/USD is likely to rise within range, with a small chance of breaking higher.
- Above expectations: 1.4% to 1.7%: An unexpected higher reading can push the pair below one support line.
- Well above expectations: Above 1.7%: A strong reading would likely boost the dollar, and the pair could break below a second support line as a result.
- Below expectations: 0.2% to 0.6%: In this scenario, EUR/USD could push above one resistance level.
- Well below expectations: Below 0.2%.
A poor reading could result in the pair breaking above a second resistance line.
For more on the euro, see the EUR/USD forecast.