When are the Eurozone Preliminary CPIs and how could they affect EUR/USD?
|Eurozone Preliminary CPIs overview
Eurostat will publish the first estimate of Eurozone inflation figures for May at 0900 GMT this Friday.
The headline CPI is anticipated to come in softer at 0.2% YoY while the core inflation is seen lower at 0.8% YoY 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 5 and 30 pips in deviations up to 4 to -4, 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 Senior Analyst, offers important technical levels ahead of the key release: “Support awaits at 1.1090, which was a peak in the winter, and it is followed by 1.1050, also a battle line. Further down, the former peak of 1.1010 now turns into support. It is followed by 1.0975, a swing high, and then by 1.0940 and 1.0895.”
“Some resistance is at 1.1111, which is 0.90 on USD/EUR, followed by the late-March peak of 1.1150. Further above, 1.12 and 1.240 are in play,” Yohay adds.
Key notes
Breaking: EUR/USD breaks above 1.1100, first time since end-March
EUR/USD: Busted through the 200-day ma scope for the 1.1240 December high – Commerzbank
Eurozone Inflation Preview: Only a dual dip could bring EUR/USD down
About Eurozone Preliminary 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.