When are the Euro-zone flash CPIs and how could they affect EUR/USD?

Euro-zone flash CPIs overview

Eurostat will publish the first estimate of Euro-zone inflation figures for January at 1000 GMT today. The headline CPI is anticipated to ease further to 1.4% y/y rate, down from 1.6% previous, while the core inflation is seen holding steady at 1% y/y rate during 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 30 pips in deviations up to 1.5 to -2, although in some cases, if notable enough, a deviation can fuel movements of up to 45-50 pips.

How could affect EUR/USD?

Yohay Elam, FXStreet's own Analyst offers important technical levels ahead of the key release: “The next line of resistance is at 1.1490, a peak from mid-January. 1.1515 was the post-Fed peak and serves as resistance. 1.1540 was a high point earlier in the year. 1.1570 is next.”

“On the downside, 1.1405 was a swing low late in January and coincides with the 50 SMA. 1.1390 was a swing low earlier. The 1.1340-1.1350 area provided support earlier in the month and 1.1310 served as a double-bottom in December,” he added further.

Key Notes

   •  EUR/USD challenges the 100-day SMA near 1.1440 ahead of CPI

   •  EUR/USD Technical Analysis: The 100-day SMA at 1.1440 holds the downside

   •  EUR/USD fails to hold above 1.15 mark

About Euro-zone 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).