When are the Eurozone Prelim CPIs and how could they affect EUR/USD?
|Eurozone Prelim CPIs overview
Eurostat will publish the first estimate of Eurozone inflation figures for August at 0900 GMT today. The headline CPI is anticipated to hold steady at 1.0% y/y while the core inflation is seen a tad higher at 1.0% y/y during the reported month vs. 0.9% last.
Deviation impact on EUR/USD
Readers can find FX Street's proprietary deviation impact map of the event below. As observed the reaction is likely to remain confined between 10 and 30 pips in deviations up to 1.5 to -2, although in some cases, if notable enough, a deviation can fuel movements of up to 45-50 pips.
How could affect EUR/USD?
Yohay Elam, FXStreet's own Senior Analyst offers important technical levels ahead of the key release: “The 2019 low of 1.1027 is critical support. It is followed by the psychologically important number of 1.1000, and then by 1.0960, which was a support line in 2017. Further down, 1.0900 and 1.0810 are noteworthy.”
“Resistance awaits at last week's low of 1.1050. It is followed by 1.1090, which was a swing low on Thursday, and by 1.1115, which capped EUR/USD this week and also in the previous one,” Yohay adds.
Key Notes
Eurozone: Inflation data in focus today – TD Securities
ECB's Lautenschlaeger: It is much too early for a huge stimulus package
EUR/USD is at risk of breaking below 1.1027/1.10
About Eurozone Prelim CPIs estimate
The Euro Zone CPI released by the Eurostat captures the changes in the price of goods and services. The CPI is a significant way to measure changes in purchasing trends and inflation in the Euro Zone. Generally, a high reading anticipates a hawkish attitude which will be positive (or bullish) for the EUR, while a low reading is seen as negative (or bearish).
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