Source: Forex Analysis
Burning forecast: US GDP at 13.30 BST
US GDP (change in %% APR). The forecast is + 2.6%. The previous value is + 1.4%.
The range of forecasts is +2.2 + 3.2%
GDP inflation (deflator). The forecast is + 1.2%. Prev + 1.9%.
Why is it important?
GDP is the main integral indicator of the state of the economy. GDP growth = economic growth. GDP decline = economic decline.
GDP takes into account everything in the economy: Production, demand, employment, etc.
What are we waiting for?
If the data comes out according to the forecast or stronger, the growth of the US market and the strengthening of the dollar. A complete reversal of the trend for the euro is possible and testing down the level of 1.1610 for EUR/USD.
Markets will look at the deflator. Falling prices hamper the Fed’s rate hike and it’s good for the market but a minus for the US dollar.
If the data comes out weak, the euro will go to 1.1785.
The material has been provided by InstaForex Company – www.instaforex.com