Germany is predicted to report a drop of 1.5% in output within the half-moon of 2021. within the view of FXTStreet’s Analyst Yohay Elam, the publication of German GDP seems like a “win-win” situation for EUR/USD bulls as expectations could also be too low and amid the currency pair’s upside momentum.
Low expectations open the door to EUR/USD gains
“Europe’s “locomotive is releasing Gross Domestic Product figures for the primary quarter of the year, and economists expect a squeeze of 1.5%. That data is about to rock the euro and overshadow eurozone GDP data released afterward Friday.”
“The euro is that the currency market’s ‘comeback kid’ – ignoring concerns a few slow immunization efforts. Moreover, with the US Federal Reserve System extending its bond-buying scheme for extended, the euro benefits from dollar weakness and from the broad risk-on sentiment. Therefore, it might only take a minor beat of expectations to jolt EUR/USD higher.”
“In case this analysis is wrong and German GDP disappoints with -1.5% or maybe -2%, there’s also an honest chance that investors would shrug it off. The figures are for the quarter that led to March and both vaccination and economic activity have substantially picked up in April. Markets tend to seem forward – especially when the bias is in favor of further gains.”
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