When are the Eurozone final CPIs and how could they affect EUR/USD?

Eurozone final CPIs estimate overview

Eurostat will publish the Eurozone's inflation final estimate for July at 0900GMT today. Consumer prices are seen arriving at 2.1% on a yearly basis, confirming the flash estimate. While the core figures are expected to come in at 1% same as that reported in the first readout.

On a monthly basis, the CPI figure for June is seen sharply lower at 0.1% versus 0.5% previous while the core CPI is expected to come in 1.1%, same as that seen in the first readout.

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 40 pips in deviations up to 1.5 to -3, although in some cases, if notable enough, a deviation can fuel movements of up to 50 pips.

How could affect EUR/USD?

A positive surprise in the readings could trigger, “meaningful up-move beyond the 1.1400 handle (which) is likely to confront fresh supply near the 1.1435 area (weekly tops), above which the up-move is likely to get extended back towards retesting an important horizontal support break-point, now turned strong barrier, near the key 1.1500 psychological mark. Alternatively, a break below the 1.1345 immediate support might again expose the 1.1300 handle, which if broken would turn the pair vulnerable to continue with its well-established bearish trend towards June 2017 congestion zone near the 1.1200 round figure mark,” Haresh Menghani, Analyst at FXStreet explains.

Key Notes

EUR/USD looks for direction near 1.1380 ahead of EMU CPI

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Eurozone inflation data amongst market movers today – Danske Bank

About Eurozone final 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).