The British monthly GDP is announced on Friday at 09:00 MT time.
Will the GDP growth strengthen the EUR?
The Euro Area will publish the GDP growth on Tuesday, at 12:00 MT time.
Instruments to trade: EUR/USD, EUR/JPY, EUR/CHF
This is the leading indicator of the economic activity of a region. As it measures the value of all products and services produced by an economy, it plays a significant role in the assessment of economic activity. A higher GDP indicates good conditions of the economy and increases the investment attractiveness of domestic currency. After the rise of 0.1% in the previous period, analysts expect the GDP growth to fall by -3.8% in the first quarter.
- If the actual level of GDP is higher than the forecasts, the EUR will rise;
- If the actual level of GDP is lower than the forecasts, the EUR will fall.
The main market tendency today is that the US dollar is rising against its major peers and riskier assets such as stocks and oil are plummeting.
The USD continues dipping, while the GBP is rising on hopes for the Brexit deal done today.
The European Central Bank will publish the monetary policy statement with the interest rate decision on January 21, at 14:45 MT time.
Joe Biden is going to unveil a Covid-19 relief package of about $2 trillion. After this announcement, the 10-year Treasury yield rose, adding support for the USD.
The US dollar’s weakness offered a boost to emerging-market currencies and oil.