Eurozone Preliminary CPIs overview
Eurostat will publish the first estimate of Eurozone inflation figures for May at 0900 GMT this Friday.
The headline CPI is anticipated to come in softer at 0.2% YoY while the core inflation is seen lower at 0.8% YoY during 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 5 and 30 pips in deviations up to 4 to -4, 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: “Support awaits at 1.1090, which was a peak in the winter, and it is followed by 1.1050, also a battle line. Further down, the former peak of 1.1010 now turns into support. It is followed by 1.0975, a swing high, and then by 1.0940 and 1.0895.”
“Some resistance is at 1.1111, which is 0.90 on USD/EUR, followed by the late-March peak of 1.1150. Further above, 1.12 and 1.240 are in play,” Yohay adds.
About Eurozone Preliminary 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).