When is the German Prelim CPI and how could it affect EUR/USD?

The German Prelim CPI Overview

The German inflation data is up for release later this session at 1200 GMT, with the CPI figures expected to tick higher to 0.4% m/m in July, while steadying at 2.1% annually.

The poor show in Germany's regional CPIs released earlier today paint a rosy picture of the harmonized German CPI readings due to be reported later today. In Hesse, MoM inflation for the month of July arrived at +0.4%, versus 0.0% prev. Meanwhile, in Bavaria stood unchanged at +0.2% MoM. In Saxony, July inflation MoM ticked higher to +0.4% versus +0.1% previous, while Brandenburg’s came in at +0.4% MoM vs. 0.0% prior.

How could it affect EUR/USD?

Yohay Elam, Analyst at FXStreet notes that technically on the 4-hour chart, “1.1680 capped the EUR/USD in mid-July and holds the pair down today, at least for now. Further up, 1.1720 was a swing high in late July and also in mid-June. 1.1750 limited the pair around mid-July and a second attempt to reach it failed. 1.1795 was the swing high in mid-July, and far above, 1.1850 capped the euro/dollar in mid-June. On the downside, we find 1.1620 as last week's low, 1.1575 as the trough in the previous week and 1.1508 as the lowest level this year.”

Key Notes

Euro area and Germany HICP in focus this week – Nomura

Germany: Inflation to hold fairly stable in July – TDS

Market themes of the Day: German inflation set to confirm 2.1% rise in July

About the German Prelim CPI

The Germany consumer price index released by the Statistisches Bundesamt Deutschland measures the average price change for all goods and services purchased by households for consumption purposes. CPI is the main indicator to measure inflation and changes in purchasing trends. A high reading is positive (or Bullish) for the EUR, while a low reading is negative (or bearish).