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 June at 0900 GMT this Tuesday.
The headline CPI is anticipated to hold steady at 0.1% YoY while the core inflation is seen a tad 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?
Haresh Menghani, FXStreet's Analyst, offers important technical levels ahead of the key release: “It will be prudent to wait for a convincing breakthrough the neckline support, around the 1.1200-1.1190 region, before positioning for any further depreciating move. Below the mentioned support, the pair is likely to accelerate the fall towards the 1.1100 round-figure mark before eventually dropping to test the very important 200-day SMA, currently near the 1.1030 region.”
“On the flip side, immediate resistance is pegged near the 1.1300 mark, above which bulls might target to retest the 1.1350 supply zone. Some follow-through strength will negate the bearish set-up and trigger some near-term short-covering move,” Haresh adds.
Key notes
Eurozone Inflation Preview: Core CPI above 1% to please EUR/USD buyers
EUR/CHF Price Analysis: Bulls jostle with 1.0700 to refresh weekly top
EUR/USD eyes consecutive monthly gains for first since January 2018
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).
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