On Friday, the Eurozone releases its first quarter GDP report, and another technical recession is expected. Unlike the U.S., which enjoyed three straight quarters of positive growth, Eurozone GDP is expected to fall for the second quarter in a row. The prospect of a double-dip recession would normally be worrisome, but traders will most likely look past this decline, as more recent reports show underlying strength and an accelerating recovery in the Eurozone. In fact, Eurozone sentiment surged in April, according to the latest economic and industrial sentiment indices. EUR/USD traded lower on Thursday but the decline was modest, which reinforces our view that investors will look past weakness in Friday’s GDP report.