At 9:00 GMT, the first estimate of euro area inflation and second-quarter GDP figures is released. Most traders expect the bloc’s economic growth to come in a tad weaker at 0.2% inter-quarter in, while it is expected to reach 1% on a yearly basis.
Meanwhile, the CPI is projected to decline 1.1% year-on-year, compared with the 1.3% growth seen earlier, while inflation is down 1.1% from a monthly report.
How can it affect the EUR / USD?
At press time, the EURUSD is trading close to 1.1155 and is reversing above 1.1162 after Spain's priliminary second-quarter GDP rate reached 0.5% with a season-to-season ratio of 0.6%.
Technically, positive surprises in both euro area GDP and CPI data could push towards the last Thursday’s highs of 1.1189. A break after the previous break could have pushed the pair to the 1.1200 level. On the other hand, the disappointing figures could have lowered them to 1.1102. The response to macroeconomic news is likely to be constrained before any major FOMC decisions about a 25% reduction in the Fed's expected interest rate.
About euro area prelim GDP:
The GDP released by the Euro Area Statistics Center is some of the total value of all goods and services produced in the euro area.
Gross domestic product is seen as a range of measures from economic activity and health to the euro area. The uptrend usually has a positive effect on the euro, while the downtrend is seen as a negative effect.
About the Euro Area prelim CPI Index:
The Euro Area CPI, released by the Euro Statistics Center, considers changes in the price of goods and services. The CPI is an important way to measure changes in the buying and inflation trends in the euro area. In general, an increase in the forecast can have a positive or an upside effect, while a decrease can have a negative or a downside effect.