When is the German Prelim CPI and how could it affect EUR/USD?
|German Prelim CPI Overview
Today's Eurozone economic docket highlights the release of Harmonized German prelim CPI data, up for release later this session at 1200 GMT. The headline CPI is expected to come in softer at 0.1% m/m and the yearly rate is expected to hold steady at 1.3% in June.
The uptick in Germany's regional CPIs released earlier today point to a rosy picture of the harmonized German CPI readings due to be reported later today. In Hesse, MoM inflation for the month of June arrived at +0.1%, versus +0.4% prev. Meanwhile, in Bavaria, the June inflation came in at +0.4% MoM versus +0.1% last. In Saxony, June inflation MoM ticked higher to +0.5% versus +0.3% previous, while Brandenburg’s came in at +0.5% MoM vs. +0.3% prior. North Rhine Westphalia May CPI arrived at+0.2% MoM vs. +0.2% prior.
How could it affect EUR/USD?
FXStreet’s Analyst Yohay Elam offered key technical levels for trading EUR/USD on the CPI release: “Overall, the technical picture is still OK but worsening. The world's most-popular currency is still holding above the 1.1350 level which has supported it recently and served as resistance earlier this month – a clear separator of ranges and critical support. Further down, 1.1320 capped EUR/USD on its way up to current levels, and 1.1245 held it down beforehand. The next support line is 1.1180 which was a low point in mid-June. Looking up, 1.1385 was a high point on Wednesday and is immediate resistance. It is followed by 1.1415 that was the peak this week and the highest since March. The next levels are 1.1445 and 1.1520.”
Key Notes
EUR/USD reverses early dip, turns neutral ahead of German CPI
Germany: HICP inflation to edge a tick lower to 1.2% in June - TDS
About the German Prelim CPI
The Germany consumer price index released by the Statistisches Bundesamt Deutschland measures the average price change for all goods and services purchased by households for consumption purposes. CPI is the main indicator to measure inflation and changes in purchasing trends. A high reading is positive (or Bullish) for the EUR, while a low reading is negative (or bearish).
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