EU/German GDP preview: What to expect in EUR/USD?

By FXStreet FXStreet (Bali) – EUR/USD is last trading just below the 1.08 handle, having failed to make much progress above the round number, after a brief last push higher as US market participants were wrapping up for the day.

Note, yesterday’s action in the US Dollar was strongly correlated to the poor performance seen in Wall Street, with the SP500 losing 1.4%. The broad-based USD weakness, even against the Euro, came despite a heavy Euro in early Europe, as ECB’s Draghi kept telegraphing a very dovish message.

German, European Q3 GDPs eyed

Today’s initial catalyst to inject volatility in the European-shared currency is due at 6GMT with the release of the German preliminary Q3 GDP figures, expected at 0.3% vs 0.4% in Q2, followed by the release of the whole EU GDP preliminary Q3 GDP numbers.

According to Michael Every, Head of Financial Markets Research Asia-Pacific: “Europe’s Q3 GDP is seen up 0.4% q-o-q and 1.7% y-o-y, which is probably about as good as it gets given the structural impediments to growth there.”

“This begs the question of where Mr. Draghi’s gloom comes from; until one recalls that this is based on the favourable headwinds of lower oil prices and EUR, which together have …read more

Source:: FX Street