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 June at 0900 GMT today. The headline CPI is anticipated to hold steady at 1.2% y/y while the core inflation is seen a tad higher at 1.0% y/y during the reported month vs. 0.8% 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?

Yohay Elam, FXStreet's own Senior Analyst offers important technical levels ahead of the key release: “Some resistance awaits at 1.1390 which capped EUR/USD earlier this week. It is followed by the weekly high of 1.1415. The next line to watch is 1.1445, which dates back to March, followed by 1.1520 – another peak from early in the year.”

Some support awaits at 1.1375, which temporarily separated ranges early in the week. More importantly, 1.1350 provided support this week and capped the currency pair in mid-June. The next lines to watch are 1.1320 and 1.1270,” Yohay adds.

Key Notes

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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).