When are the German/ Eurozone Q3 GDP and how could they affect EUR/USD?

The German/Eurozone Q3 GDP Overview

The Federal Statistics Office of Germany is set to release preliminary Q3 Gross Domestic Product (GDP) data for Germany at 09:00 GMT, and Eurostat will likely report flash Eurozone GDP figures for the same period at 10:00 GMT on Thursday.

Germany's preliminary GDP is expected to remain flat at 0% quarter-over-quarter (QoQ) in the third quarter, after contracting 0.3% in the previous quarter. Meanwhile, the economy is expected to expand at 0.3% year-over-year (YoY) in Q3, following the previous expansion of 0.2%.

The seasonally adjusted flash Eurozone GDP is expected to hold steady at 0.1% QoQ growth in Q3, while annual growth is projected to slow to 1.2% from 1.5% previously.

How could the German/Eurozone Q3 GDP affect EUR/USD?

The EUR/USD pair remains steady after the release of GDP data from Germany and the Eurozone as traders adopt caution ahead of the European Central Bank (ECB) interest rate decision due later in the day. The ECB is expected to hold rates steady for a third straight meeting in October, with no policy changes likely in 2025. Unemployment data from Germany and the Eurozone, along with German Consumer Price Index (CPI) figures, will also be eyed.

The EUR/USD pair holds ground following the highly anticipated meeting between US President Donald Trump and China's President Xi Jinping in South Korea. President Trump announced that tariffs on China will be reduced to 47% from the current 57%. Trump added that the rare earth dispute has been resolved, ensuring no further restrictions on China's rare earth exports. Furthermore, Chinese President Xi Jinping said that "two sides should look at the long-term interests of cooperation.

The US Dollar (USD) remains subdued due to uncertainty surrounding the Federal Reserve (Fed) policy stance in December. Policymakers made a mental note of a general increase in some inflationary pressures through the second half of the year, but not enough to deter another leg down in interest rates. However, Fed Chair Jerome Powell stated that another rate cut in December is far from certain.

Technically, the EUR/USD pair is trading around 1.1610 at the time of writing. The technical analysis of the daily chart suggests an ongoing bearish bias as the 14-day Relative Strength Index (RSI) remains below the 50 mark. The pair may find its initial support at the two-month low of 1.1542, last recorded on October 14. On the upside, the immediate resistance lies at the nine-day Exponential Moving Average (EMA) of 1.1626, followed by the 50-day EMA at 1.1656.