When are the Euro-zone flash CPIs and how could they affect EUR/USD?
|Euro-zone flash CPIs overview
Eurostat will publish the first estimate of Euro-zone inflation figure for December at 1000 GMT today. The headline consumer inflation (CPI) is expected to tick down to 1.8% on a yearly basis while the core inflation is seen holding steady at 1.0% y/y rate during the reported month.
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 Analyst offers important technical levels ahead of the key release: “1.1425 serves as an initial hurdle as it is the convergence of the BB 4h-Middle, the SMA 100-1h, the SMA 5-1d, and the BB 1h-Upper. Further above, the hard cap is at 1.1485 where we note the potent 100-day SMA, the BB 1d-Upper, the PP 1d-R2, and last week's high. It will be tough for the pair to move above this level.”
“Looking down, support is slightly weaker. 1.1355 is the confluence of the BB 1h-Lower, the Fibonacci 61.8% 1m, last week's low, and the Fibonacci 61.8% one-day. The path low is full of minor cushions, but significant support awaits only at 1.1272 where we see the meeting point of last month's low, the PP 1d-S2, and the Fibonacci 161.8% one-week,” he added further.
Key Notes
• Eurozone: Core inflation likely to remain unchanged at 1.0% y/y - TDS
• EUR/USD Forecast: Temporary calm before two storms
• EUR futures: recovery could extend further
About Euro-zone flash 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).
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.