How Does Eurozone Final CPIs Impact EURUSD?

December 17, GKFX – Eurostat will publish the Eurozone's inflation final estimate for November at 10:00 GMT today. Consumer prices are seen arriving at 2.0% on a yearly basis, confirming the flash estimate while the core figures are seen unchanged at 1%.

On a monthly basis, the CPI data for November is expected to come in at -0.2% versus 0.2% previous.

Deviation impact on EURUSD

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 Eurozone Final CPIs Impact EURUSD

Technically, “Friday's downfall confirmed a near-term bearish breakthrough a symmetrical triangular formation and thus, increases prospects for an extension of the bearish momentum towards challenging yearly lows, around the 1.1215 region.

A follow-through selling pressure has the potential to continue dragging the pair, even below the 1.1200 handle, towards testing its next support near the 1.1160 region. 

On the flip side, any attempted recovery might now confront some fresh supply near the ascending trend-line support break-point, now turned resistance, currently around the 1.1325 region, above which a bout of short-covering could lift the pair further towards the 1.1365-70 strong horizontal resistance,” Haresh Menghani, Analyst at FXStreet explains.

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).


This article was provided by GKFX. The information provided herein is for general informational and educational purposes only. It is not intended and should not be construed to constitute advice.

If such information is acted upon by you, then this should be solely at your discretion, and GKFX will not be held accountable in any way.

Share Your Opinion, Write a Comment