Overview of US GDP in the third quarter
Tuesday’s U.S. Economic Record highlights the release of the final third-quarter GDP printout, scheduled for 13:30 GMT. The report is expected to confirm the previous two estimates and show that the world’s largest economy grew 33.1% annualized in the July-September quarter.
How could this affect EUR / USD?
Given that this week’s price action was driven exclusively by the developments surrounding the coronavirus saga, the data is unlikely to provide any impetus. That said, any significant deviation from the expected reading – although it seems unlikely – could infuse some volatility and produce significant trading opportunities.
Meanwhile, FXStreet analyst Yohay Elam offered a brief technical overview of the major and wrote, “The Euro / Dollar still has upward momentum on the four-hour chart and is trading above moving averages. singles of 50, 100 and 200 after a rapid drop below. the 50 SMA Monday. The relative strength index is less than 70, outside of overbought conditions. “
Yohay further provided important technical levels to trade the pair: “Resistance looks at the daily high of 1.2250 followed by the 2020 high of 1.2272. Further above, round 1.23 is observed. Support is at 1.2213 daily low, followed by 1.2175, a high last week, then 1.2130 – a double bottom. “
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The annualized gross domestic product published by the US Bureau of Economic Analysis shows the monetary value of all goods, services and structures produced in a country during a given period. Annualized GDP is a raw measure of market activity because it indicates the rate at which a country’s economy is growing or shrinking. Generally speaking, a high reading or a better than expected number is considered positive for stocks, while a low reading is negative.