When is the US GDP Report And How Could it Affect Major

The most prominent event on the US calendar today is the fourth-quarter GDP report due out at 13:30 GMT.

Economists are expecting the preliminary figure to show 3.9% year-on-year growth in the October-December period, which indicates growth losing momentum by a large margin compared to the strong recovery in Q4 of 33.4%

The data, along with the market risk sentiment and the US stimulus headlines, will play a key role in influencing the USD price movements.

Regarding the common currency against the US dollar, the US dollar has been receiving support from investors ’preference for safety amid the sentiment around global stock markets as well as the European Central Bank’s fluctuations around the strength of the Euro lately.

The weaker-than-expected US GDP reading is expected to raise concerns about the economic repercussions of the Coronavirus and will further affect already weak risk sentiment, all of which may provide momentum for the dollar.

However, if the reading is in line with market expectations, the market’s reaction is expected to be limited with increasing doubts about the timing and size of the new US stimulus package.