Eurozone Preliminary CPIs and GDP overview
Eurostat will publish the first estimate of Eurozone inflation figures for November at 1000 GMT on Tuesday.
The headline CPI is anticipated to drop 0.2% YoY vs. -0.3% previous while the core inflation is seen steady at 0.2% YoY in the reported month.
Deviation impact on EUR/USD
Readers can find FX Street's proprietary deviation impact map of the CPI below. As observed the reaction is likely to remain confined between 10 and 20 pips in deviations up to 3 to -4, although in some cases, if notable enough, a deviation can fuel movements of up to 30-45 pips.
How could affect EUR/USD?
Omkar Godbole, FXStreet's Analyst, is off the view, “despite the quick recovery to levels above the 100-hour SMA, the immediate bias remains neutral. That's because the pair is yet to clear the psychological hurdle of 1.20. The EUR bulls failed to establish a foothold above that hurdle on Monday, having faced similar rejection on Sept. 1.”
“More importantly, the pair ended up carving a red candle with a long upper shadow. The bias will turn bearish if Monday's low of 1.1922 is breached. That would shift risk in favor of a drop to 1.18 (Nov. 23 low),” Omkar adds.
Key notes
Forex Today: New month, fresh market gains, PMIs, Powell's testimony and Brexit eyed
EUR/USD adds over 30 pips as risk assets gain ground
ECB flags more stimulus ahead as financial conditions tighten
About Eurozone Preliminary CPIs and GDP 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).
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.
If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.
FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.
The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.
Recommended content
Editors’ Picks
AUD/USD shift its attention to 0.6600 and beyond
AUD/USD left behind Friday’s decline and rose past the 0.6500 barrier, meeting resistance once again around the 0.6550 zone on the back of the pronounced sell-off in the US Dollar.
EUR/USD: Initial contention aligns near 1.0330
The sharp decline in the Greenback allowed EUR/USD to regain some composure and reclaim the 1.0500 hurdle at the beginning of the week ahead of key releases on both sides of the ocean.
Gold turns bearish and could test $2,600
After recovering toward $2,700 during the European trading hours, Gold reversed its direction and dropped below $2,650. Despite falling US Treasury bond yields, easing geopolitical tensions don't allow XAU/USD to find a foothold.
MicroStrategy set to push Bitcoin to new highs after 55,500 BTC acquisition, should investors be concerned?
MicroStrategy revealed on Monday that it made another heavy Bitcoin purchase, acquiring 55,500 BTC for $5.4 billion at an average rate of $97,862 per coin.
Eurozone PMI sounds the alarm about growth once more
The composite PMI dropped from 50 to 48.1, once more stressing growth concerns for the eurozone. Hard data has actually come in better than expected recently – so ahead of the December meeting, the ECB has to figure out whether this is the PMI crying wolf or whether it should take this signal seriously. We think it’s the latter.
Best Forex Brokers with Low Spreads
VERIFIED Low spreads are crucial for reducing trading costs. Explore top Forex brokers offering competitive spreads and high leverage. Compare options for EUR/USD, GBP/USD, USD/JPY, and Gold.