When are the Eurozone flash CPIs and how could they affect EUR/USD?
Eurozone flash CPIs estimate overview
Eurostat will publish the Eurozone's inflation first estimate for February at 10.00GMT today. Consumer prices are seen easing to 1.2% on a yearly basis versus 1.3% seen previously. While the core figures are expected to tick higher to 1.1% in 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 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?
Haresh Menghani, Analyst at FXStreet explains, “With short-term technical indicators gradually drifting into bearish territory, a convincing break below the 1.2200 handle now seems to prompt some aggressive selling and turn the pair vulnerable to continue sliding in the near-term. Below the mentioned support, the fall is likely to get extended towards the 1.2100 handle en-route 1.2070-65 strong horizontal support.”
“On the flip side, recovery attempts from current support area might now confront fresh supply near the 1.2250-55 region and any subsequent up-move seems more likely to be capped at the 1.2300 handle,” Haresh adds.
Key Notes
Eurozone flash CPI: Core figures to tick higher in January - Nomura
Eurozone: Headline inflation likely to slip to 1.2% y/y - TDS
About Eurozone flash 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).
Author
Dhwani Mehta
FXStreet
Residing in Mumbai (India), Dhwani is a Senior Analyst and Manager of the Asian session at FXStreet. She has over 10 years of experience in analyzing and covering the global financial markets, with specialization in Forex and commodities markets.
