When is the US CPI report and how could it affect EUR/USD?
|US October CPI Overview
Wednesday's US economic docket highlights the release of the latest consumer inflation figures, due later during the early North-American session at 13:30GMT. The headline CPI is anticipated to have edged higher by 0.2% MoM in October as compared to a flat reading in the previous month, while the yearly rate is expected to hold steady at 1.7%. Meanwhile, core CPI - excluding food and energy costs - is predicted to have increased by 0.2% MoM rate as against 0.1% rise in September and the annual core inflation is seen holding steady at 2.4%.
How could it affect EUR/USD?
Given that the Fed Chair Jerome Powell is scheduled to testify before the Joint Economic Committee later during the US session on Wednesday, barring any knee-jerk reaction, the data seems likely to provide any meaningful impetus to the EUR/USD pair.
Meanwhile, Yohay Elam, FXStreet's own analyst provided some important technical levels to trade the major: “Below 1.10, the next significant support line is only at 1.0940, which provided support in early October. It is followed by 1.0905, which was a swing low in late September, and finally by the 2019 trough of 1.0879.”
“Some resistance awaits at 1.1035, a stepping stone on the way down, and 1.1055, which capped it last week. Next, we find 1.1090, a double top, and 1.1110,” he added further.
Key Notes
• US CPI Preview: Inflation remains secondary to Fed policy
• US CPI Preview: Banks expecting inflation to continue to firm
• EUR/USD Technical Analysis: a break below 1.10 remains well on the cards
About the US CPI
The Consumer Price Index released by the US Bureau of Labor Statistics is a measure of price movements by the comparison between the retail prices of a representative shopping basket of goods and services. The purchasing power of USD is dragged down by inflation. The CPI is a key indicator to measure inflation and changes in purchasing trends. Generally speaking, a high reading is seen as positive (or bullish) for the USD, while a low reading is seen as negative (or Bearish).
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