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EUR/USD Signal - Eurozone GDP - 07 Mar 2017

Signal details
Entry Price: 
1.0605
Close Price: 
1.0569
Direction: 
Low
Expiry Time: 
21:00 GMT
Result: 
ITM
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The fourth quarter GDP figures from the Eurozone will be released later today. Expectations on the data call for the revised GDP to remain unchanged at 0.4%. In the previous data release, Eurostat showed that growth increased 0.4% on a quarterly basis in the three months ending December 2016. It was lower than the flash readings of 0.5%. On a year over year basis, growth in the Eurozone was slower, rising 1.7% in 2016 fourth quarter, compared to 1.8% in the third quarter during the year.

Today's GDP data comes ahead of the European Central Bank's meeting due this Thursday. No changes are expected from the central bank with the key rates remaining unchanged. However, an upward surprise to today's GDP figures could boost confidence among ECB officials.

Last week, economic data from the Eurozone showed that inflation flash estimates rose to 2.0% in February, a move that could potentially cheer up policy makers, although further data showed that core inflation, which excludes the volatile food and energy prices was unchanged at 0.9%.

From a technical outlook, EURUSD could be looking at posting some intraday highs today. Watch for a break out above the current highs near 1.05925, which will see prices rally towards 1.0600 - 1.0609. Look to purchase daily PUT options near 1.0605 for an end of day expiry time which will likely see the EURUSD weaken towards the end of the day as price could likely struggle near 1.0600 – 1.0609 resistance zone.

Disclaimer: The article is written for informative purposes only and it is not financial advice. The author does not have any position in the currency pairs mentioned, and no plans to initiate a position. He wrote the article himself and expressed his own opinions. He has no business nor personal relationships with any mentioned government entities or stocks. Readers should not treat any opinion expressed by the author as a specific inducement to make a particular trade or follow a particular strategy, but only as an expression of his opinion.