German prelim CPI Overview
The German inflation data is up for release later this session at 1200GMT, with the CPI figures expected to remain steady at 0.2% m/m in July, while easing slightly to 1.5% annually, compared to the 1.6% result reported in June.
Germany's regional CPIs released earlier today paints a rosy picture of the harmonized German CPI report due to be reported shortly. Brandenburg inflation for the month of July MoM came in at +0.4% versus +0.2% prev. In Hesse, MoM rose to +0.4%, versus +0.1% prev. Meanwhile, in Bavaria MoM also ticked higher to +0.4%, versus +0.1% last. In Saxony, July inflation MoM came in at +0.3% versus +0.2% prev.
How could it affect EUR/USD?
On a positive print, we could see the EUR/USD pair re-attempt 1.1750 barrier, which could open doors for a test of 1.1777 (30-month tops) en route 1.1800 levels (round figure). On the flip side, if the readings disappoint markets, the rate could fall back towards the daily low of 1.1671, below which a test of 1.1650/48 (psychological levels/ 10-DMA) is imminent, paving the way towards 1.16 handle.
Key notes
EUR/USD refreshes daily tops near 1.1720, German CPI – Up next
EUR/USD caught a fresh bid tone last minutes, with the bulls taking the rate back above Aug 2015 tops in a bid to print fresh daily top at 1.1717. Looking ahead, the EUR/USD pair awaits the release of the German CPI data for fresh impetus on the Euro, while the main risk event for today remains the US Q2 GDP data,
About German prelim CPI
The Germany consumer price index released by the Statistisches Bundesamt Deutschland measures the average price change for all goods and services purchased by households for consumption purposes. CPI is the main indicator to measure inflation and changes in purchasing trends. A high reading is positive (or Bullish) for the EUR, while a low reading is negative (or bearish).
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