When is German prelim CPI and how could it affect EUR/USD?

German prelim CPI Overview

The German inflation data is up for release later this session at 1200GMT, with the CPI figures expected to drop -0.1% in April, versus 0.1% reading seen a month ago, while adding 1.9% annually, compared to the 1.6% result reported in March.

Germany's regional CPIs released earlier today painted a rosy picture of the harmonized German CPI report on yearly basis, but entered into negative territory on monthly basis. Brandenburg inflation for the month of Apr YoY came in at +1.8% versus +1.4% prev. In Hesse, YoY rose +2.1%, versus +1.7% prev. Meanwhile, in Bavaria, YoY also rose +1.9% versus +1.7% last. In Saxony, Apr inflation YoY came in at +2.1% versus +1.8% prev.  

How could affect EUR/USD?

On upbeat annualized CPI data, we could see the buoyant tone intact around the euro, keeping the pair well bid above 1.09 handle. On the flip side, if the readings disappoint, the rate could fall towards the next support zone near 1.0870 region. However, the German CPI figures could be overlooked in the wake of the ECB monetary policy decision.

Key notes

Busy eco calendar and ECB meeting

The EU Commission confidence data for April should be strong with additional modest gains in April. More important are the German April inflation data, following the surprisingly sharp March drop. The market expects a rebound. 

About 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).