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 October at 10.00 GMT today. Consumer prices are expected to edge slightly higher to 2.2% on a yearly basis while the core figures are also seen a tad firmer at 1.0% 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?
According to FXStreet’s Analyst Haresh Menghani, “From a technical perspective, bearish traders now look for a sustained weakness through the 1.1335 immediate horizontal support, below which the pair is likely to accelerate the fall towards YTD lows, around the 1.1300 handle. A follow-through selling has the potential to continue dragging the pair further towards the 1.1270-65 region, support marked by the lower end of a short-term descending trend-channel formation on the 4-hourly chart.”
“On the flip side, any meaningful recovery attempt might now confront fresh supply near the 1.1375 region, trend-channel resistance, above which a bout of short-covering could lift the pair beyond the 1.1400 handle towards its next hurdle near the 1.1430 area,” Haresh adds.
Key Notes
Market themes of the Day: Mix of Eurozone growth, inflation, and unemployment is due
Eurozone: HICP inflation likely to rise to 2.2% in October - Nomura
EUR/USD Technical Analysis: Near-term support from 1.1330 holding for now
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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