When are the Eurozone final CPIs and how could they affect EUR/USD?

Eurozone final CPIs estimate overview

Eurostat will publish the Eurozone's inflation final estimate for January at 10.00GMT today. Consumer prices are seen 1.3% on a yearly basis, confirming the flash estimate. While the core figures are expected to arrive at 1.0% same as that reported in the first readout.

On a monthly basis, the CPI figure for January is decelerating to -0.9% versus 0.4% previous while the core CPI is also expected to ease -1.6% versus 0.5% last.

This gauge is considered the Eurozone's most important inflation data because it's used as the central bank's inflation target.

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 10 and 40 pips in deviations up to 1.5 to -3, although in some cases, if notable enough, a deviation can fuel movements of up to 50 pips.

How could affect EUR/USD?

Karen Jones, Analyst at Commerzbank explains, “EUR/USD is finding some nearby support at the 1.2232/57 support lines. The rebound from here is expected to remain tepid and is expected to remain capped by 1.2345. Beyond this, we should see the market continue to weigh on the downside following its recent failure move to a new high. The new high has been accompanied by a divergence of the daily and weekly RSI.” 

“While capped by the 20-day ma at 1.2367, the market will remain directly offered. Nearby support below the uptrends is now 1.2206/1.2165, the 18th January low, this guards the 2017-2018 uptrend, which lies at 1.2044 and a close below here will be needed to confirm the end of the move higher,” Karen adds.

Key Notes

Europe: Key events ahead - Barclays

EUR/USD soggy around 1.2300 ahead of EMU CPI

About Eurozone final 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).