When are the Eurozone flash CPIs and how could they affect EUR/USD?

Eurozone flash CPIs estimate overview

Eurostat will publish the euro zone's inflation first estimate for December at 10.00GMT today. Consumer prices are seen easing to 1.4% on a yearly basis versus 1.5% seen previously. While the core figures are expected to edge higher to 1.0% 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, “On daily charts, short-term technical indicators continue to hold in positive territory and have also eased from near-term overbought conditions. Hence, a clear break through the 1.2100 historic support, turned strong resistance, should accelerate the up-move towards 1.2160-65 resistance and pave the way for an extension of the pair's bullish trajectory.”

“On the flip side, retracement back below 1.2060-55 area might drag the pair back towards retesting the key 1.20 psychological mark. A convincing break below the mentioned handle might prompt some additional profit-taking slide towards 1.1945-40 horizontal zone en-route the 1.1900 mark and 1.1875-70 support,” Haresh adds.

Key notes

Eurozone inflation to slip to 1.4% y/y for December - TDS

EUR/USD: Bullish consolidation to extend ahead of EZ CPI

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).