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 April at 0900 GMT today. The headline CPI is anticipated to accelerate by 1.6% y/y, compared to 1.4% growth seen previously while the core inflation is seen a tad firmer 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?

Haresh Menghani, FXStreet's own Analyst offers important technical levels ahead of the key release: “A subsequent slide back below the 1.1185-75 region - 61.8% Fibonacci retracement level of the 1.0341-1.2556 up-move, suggests the resumption of the pair's well-established bearish trend. Hence, a follow-through weakness, towards challenging near four-month-old descending trend-channel support near the 1.1100 round figure mark, now looks a distinct possibility. On the flip side, any attempted recovery might continue to confront some fresh supply near the 1.1215-20 region, which is followed by the mentioned trend-line resistance, currently near mid-1.1200s.”

Key Notes

Higher euro area inflation due to timing of Easter

EUR/USD: Bounce losing upside momentum - Commerzbank

EUR/USD Forecast: Bears are ready to take over, but everything depends on the NFP

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).