Eurozone Preliminary CPIs overview
Eurostat will publish the first estimate of Eurozone inflation figures for July at 0900 GMT this Friday.
The headline CPI is seen a tad lower at 0.2% YoY while the core inflation is expected to hold steady at 0.8% YoY during the reported month.
At the same time, the bloc’s Preliminary GDP report for Q2 will be published, with the headline figures seen arriving at -12% QoQ vs. -3.6% previous. On an annualized basis, Eurozone GDP is likely to contract 14.5% vs. -3.1% last.
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 5 and 30 pips in deviations up to 4 to -4, although in some cases, if notable enough, a deviation can fuel movements of up to 45-50 pips.
How could affect EUR/USD?
Haresh Menghani, FXStreet's Analyst, offers important technical levels ahead of the key release: “any meaningful pullback might still be seen as a buying opportunity and seems more likely to find decent support near the mentioned resistance breakpoint, around the 1.1820-15 region. A subsequent slide below the 1.1800 mark might lead to some additional weakness and drag the pair further towards the 1.1760-55 intermediate support en-route the overnight swing low, around the 1.1730 region.”
“On the flip side, the 1.1935-40 region seems to be the next relevant target for bulls, which is followed by the 1.1975-80 zone ahead of the key 1.2000 psychological mark,” Haresh adds.
About Eurozone Preliminary 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).
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.