Over the past 24 hours, politics has taken center stage for the U.S. markets. Impeachment hysteria has dominated sentiment, with investors choosing to bet on a Trump Senatorial acquittal and hedge modestly with the safe-havens. Tomorrow will be a much different story. U.S. Annualized GDP (Q3) headlines a session dominated by fundamentals.

In addition to GDP, there are a few other news items on Friday’s U.S. economic calendar worthy of note:

Event                                                                              Projected    Previous

Core Personal Consumption (Q3)                                  2.1%             2.1%

GDP Annualized (Q3)                                                        2.1%             2.1%

Michigan Consumer Sentiment Index (Dec.)                99.2              99.2

Personal Income (MoM, Nov.)                                         0.3%             0.0%

Personal Spending (Nov.)                                                 0.4%             0.3%

In short, the U.S. economy is widely expected to hold-the-line in this collection of metrics. GDP and Core Personal Consumption are to come in unchanged, as is the Michigan Consumer Sentiment Index. However, income and spending levels are projected to increase moderately. Should this group of figures miss the mark collectively, be ready for volatility to sweep the indices and USD.

Will Q3 GDP Send The EUR/USD Directional? 

Earlier today, the EUR/USD put in a hard test of the Daily SMA at 1.1109. Since then, rates have rallied by 15 pips and are within intraday bullish territory.

Here are three levels to watch going into Friday’s U.S. GDP-fueled session:

• Resistance(1): Post-U.K. Election High, 1.1199
• Support(1): Daily SMA, 1.1109
• Support(2): Bollinger MP, 1.1077

Overview: An intermediate-term longside bias for the EUR/USD continues to be warranted. Until we see a breakout below daily support at the SMA and Bollinger MP, it isn’t unreasonable to favor the long side of this market.