When is the German Prelim CPI and how could it affect EUR/USD?
German Prelim CPI Overview
Thursday’s Eurozone economic docket headlines the Harmonized German Preliminary Consumer Price Index (CPI) data, up for release later this session at 1200 GMT.
The headline CPI is expected to come in at -0.1% MoM and the yearly rate is seen sharply lower at +0.5% in May even as the country re-opens after the coronavirus-imposed lockdown.
The softer German regional CPIs, reported earlier today, likely suggests the harmonized price pressures will enter into deflation this month.
In Hesse, MoM inflation for the month of May arrived at -0.1%, versus +0.5% prev. Meanwhile, in Bavaria, the May inflation came in at -0.2% MoM versus +0.5% last. In Saxony, May inflation MoM rose by 0.1% versus +0.4% previous while Brandenburg’s came in at -0.1% MoM vs. +0.6% prior. North Rhine Westphalia May CPI arrived at -0.1% MoM vs. +0.3% prior.
How could it affect EUR/USD?
FXStreet’s Senior Analyst Yohay Elam offers key technical levels for trading EUR/USD heading into the key macro events: “Resistance awaits at the eight-week high of 1.1035. It is followed by 1.1090, which was a swing high in March. Significant resistance is at 1.1150, the high point that month.”
“Support awaits at 1.0995, a stepping stone on the way up. It is followed by 1.0975, a swing high from last week, and then by 1.0940, which was Wednesday's low,” Yohay adds.
Key notes
EUR/USD eases from tops, back below 1.1000
ECB’s Villeroy: Negative rates are an effective policy tool
Eurozone Inflation Preview: EUR/USD has the wind in its back, and only a dual dip could down it
About the German Prelim CPI
The Germany consumer price index released by the Statistisches Bundesamt Deutschland measures the average price change for all goods and services purchased by households for consumption purposes. CPI is the main indicator to measure inflation and changes in purchasing trends. A high reading is positive (or Bullish) for the EUR, while a low reading is negative (or bearish).