Markets to Start Data Watching Again

Markets have taken their eye off of data releases recently but today sees a number of key releases that have clear scope to alter opinions.

• Eurozone GDP data: We get GDP data from a number of Eurozone countries this morning most notably Germany at 9:00BST, but also Lithuania, Austria and Belgium. This comes ahead of tomorrow's French, Spanish, Italian and pan-Eurozone data. Markets are likely to react to the German GDP data in particular which will set expectations for the rest of the Eurozone and the scale of the ECB policy response going forward.
• Eurozone CPI data: This morning we have already seen Spanish CPI and the first of the German state CPIs with the national German print this afternoon. There are unlikely to be as market moving today - the focus will be on the GDP data.
• US GDP data: Probably the biggest release of the day. Consensus is expecting a -34.5% Q/Q annualized.
• Our technical analyst points to bullish conditions in both Bunds and EUR/USD. Poor data should see Bunds target 138.84 resistance while EURUSD should benefit most from good data with 1.1815 the initial resistance.