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

Eurozone flash CPIs overview

Eurostat will publish the first estimate of Eurozone inflation figures for May at 0900 GMT today. The headline CPI is anticipated to accelerate by 1.3% y/y, compared to 1.7% growth seen previously while the core inflation is seen lower at 0.9% y/y during the reported month vs. 1.3% 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 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?

Haresh Menghani, FXStreet's own Analyst offers important technical levels ahead of the key release: “A convincing break through the mentioned barrier, currently near the 1.1280 region, leading to a subsequent move beyond the 1.1300 handle might negate any near-term bearish bias and prompt some aggressive short-covering move towards reclaiming the 1.1400 round figure mark.”

“On the flip side, the 1.1210-1.1200 region (50-day SMA) now becomes immediate support to defend, which if broken might turn the pair vulnerable to slide back towards testing the 1.1135-30 intermediate support before eventually falling to challenge the 1.1100 round figure mark,” Haresh adds.

Key Notes

Eurozone inflation and Fed speak amongst market movers today – Danske Bank

Eurozone: Headline inflation likely to drop back sharply to 1.2% - TDS

Daily Recommendations on Major - EUR/USD

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).