When are the Eurozone flash CPIs and how could they affect EUR/USD?
|Eurozone flash CPIs estimate overview
Eurostat will publish the Eurozone's inflation first estimate for April at 09.00 GMT today. Consumer prices are seen unchanged at 1.3% on a yearly basis while the core figures are expected to tick lower to 0.9% in 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 40 pips in deviations up to 1.5 to -3, although in some cases, if notable enough, a deviation can fuel movements of up to 50 pips.
How could affect EUR/USD?
Haresh Menghani, Analyst at FXStreet explains, “from a technical perspective, the pair has managed to rebound from the 1.1935 support marked 61.8% Fibonacci retracement level of the 1.1554-1.2556 upsurge. With short-term technical indicators gradually recovering from near-term oversold conditions, the recovery move seems more likely to get extended, marginally above the key 1.20 psychological mark, towards retesting the very 200-day SMA support turned resistance near the 1.2015-20 region en-route 50% Fibonacci retracement level near mid-1.2000s.”
Key Notes
Eurozone: Flash inflation to remain at the 1.3% level – Danske Bank
European FX Outlook: The Eurozone inflation is expected to remain off the ECB target
About Eurozone 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).
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