When are the Eurozone prelude CPIs & how could they affect EUR/USD?
Summary on Preliminary CPIs
Eurostat will announce the first estimate of Eurozone inflation figures for March at 0900 GMT on Wednesday.
The headline of CPI (Consumer Price Index) is an antedate to come in higher at 1.3% YoY while the core inflations are also seen up by 1.2% YoY during the reported month.
Inflation remains central to ECB’s purpose. The aim’s for an annual rate of inflation of below, but close to 2% over the medium term, as measured by the Harmonized Index of Consumer Prices (HICP).
With rising inflation supposition, as reflected by the surge in global yields, the Eurozone CPI report will be closely eyed.
How could affect EUR/USD?
Heading into the Eurozone CPI release, EUR/USD endeavors a bounce from four-month lows 1.1704 reached before the Asian session. The pullback in the US Dollar index could be attributed to the recovery in the major.
Haresh Menghani said that “Any meaningful bounce might still be seen as a selling chance and remain capped near the specified meeting support breakpoint, around the 1.1760 zones.”
On the other side, some follow-through selling below the 1.1700 marks now seems to stimulate the fall further towards the 61.8% Fibo. level around the 1.1620-15 region. This is closely watched by the 1.1600 marks, which if broken should have covered the way for the continuation of the ongoing bearish trends. The pair might then aim to dare the next important support near the key 1.1500 psychological marks, “Haresh adds.
About Eurozone Preliminary CPIs estimate
The Eurozone CPI published by Eurostat captures the changes in the price of Goods & Services. The CPI is a meaningful way to measure changes in purchasing trends and inflation in the EUROZONE.
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 (bearish).