EUR/USD is well-positioned to take advantage of better than expected German GDP

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.”

Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and will not in any way encounter as a recommendation to shop for or sell in these assets. you ought to do your own thorough research before making any investment decisions. FXStreet doesn’t in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also doesn’t guarantee that this information is of a timely nature. Investing in Open Markets involves an excellent deal of risk, including the loss of all or some of your investment, also as emotional distress. All risks, losses, and costs related to investing, including total loss of principal, are your responsibility. The views and opinions expressed during this article are those of the authors and don’t necessarily reflect the official policy or position of FXStreet nor its advertisers.

admin

Read Previous

S&P 500 Futures rise to fresh record top near 4,200 as Biden urges US Congress for stimulus

Read Next

EUR/USD: Strong resistance aligns at 1.2185- UOB

Leave a Reply

Your email address will not be published. Required fields are marked *