When are the Eurozone Preliminary CPIs/ GDP and how could they affect EUR/USD?
|Eurozone Preliminary CPIs and GDP overview
Eurostat will publish the first estimate of Eurozone inflation and growth figures for October and Q3 2020 respectively at 0900 GMT on Friday.
The headline CPI is anticipated to drop to 0.3% YoY while the core inflation is seen steady at 0.2% YoY in the reported month.
On an annualized basis, the bloc’s economy is seen contracting 7% in Q3 while inter-quarter the GDP rate is expected to expand by 9.4% vs. -11.8% prior.
Deviation impact on EUR/USD
Readers can find FX Street's proprietary deviation impact map of the CPI below. As observed the reaction is likely to remain confined between 10 and 20 pips in deviations up to 3 to -4, although in some cases, if notable enough, a deviation can fuel movements of up to 30-45 pips.
How could affect EUR/USD?
Yohay Elam, FXStreet's Senior Analyst, notes important technical levels ahead of the key release, citing that the bears remain in control, as “support awaits at 1.1650, the fresh low recorded on Thursday. It is followed by 1.1625, which was a low point in mid-September, and then by 1.1610. Resistance is at 1.1695, the daily high, followed by 1.1720, which was a swing low earlier this week. Further above, 1.1745 and 1.1785 await EUR/USD.”
Key notes
EUR/USD Analysis: Post-ECB slide stalls near 100-DMA, Eurozone data eyed for fresh impetus
Coronavirus update: Another record daily surge of 18,681, most of Germany deemed as ‘high risk’
Eurozone Third Quarter GDP Preview: The best view may be to the rear
About Eurozone Preliminary CPIs and GDP 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).
The Gross Domestic Product released by the Eurostat is a measure of the total value of all goods and services produced by the Eurozone. The GDP is considered as a broad measure of the Eurozone economic activity and health. Usually, a rising trend has a positive effect on the EUR, while a falling trend 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.