German Prelim CPI Overview
Today's Eurozone economic docket headlines the release of Harmonized German prelim CPI data, up for release later this session at 1200 GMT. The headline CPI is expected to come in at 0.0% m/m and the yearly rate is seen a tad firmer at 1.2% in August from 1.1% previous.
The softness in Germany's regional CPIs released earlier today point to a bleak picture of the harmonized German CPI readings.
In Hesse, MoM inflation for the month of August arrived at -0.1%, versus +0.5% prev. Meanwhile, in Bavaria, the August inflation came in at -0.1% MoM versus +0.3% last. In Saxony, August inflation MoM ticked lower to -0.2% versus +0.4% previous, while Brandenburg’s came in at -0.2% MoM vs. +0.3% prior. North Rhine Westphalia August CPI arrived at 0.0% MoM vs. +0.4% prior.
How could it affect EUR/USD?
FXStreet’s Analyst Yohay Elam offered key technical levels for trading EUR/USD on the CPI release: “Momentum on the four-hour chart has turned negative and EUR/USD continues trading below the 50, 100, and 200 Simple Moving Averages – bearish signs. It also continues trading in a downtrend channel. Support awaits at 1.1050, which provided support late last week. The next level to watch is 1.1027 – the 2019 low. 1.1000 and 1.0960 are next.”
“Resistance awaits at 1.1115, which has capped the pair several times in recent weeks. It is closely followed by 1.1130 – twice a support line – and by 1.1165,” he adds further.
Key Notes
Eurozone: Economic Sentiment surprises on the upside in August – ING
Italy’s PM Conte: New Govt will have to ensure it begins immediate work on the 2020 budget
EUR/USD clings to gains around 1.1080 on German data
About the 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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