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 February at 1000 GMT today. The headline CPI is anticipated to accelerate slightly to 1.5% y/y rate vs. 1.4% previous while the core inflation is seen holding steady at 1.1% y/y rate 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 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: “From a technical perspective, the pair repeated failures to sustain/build on the momentum beyond 100-day SMA and the 1.1400 mark clearly points to persistent selling interest at higher levels. The said handle, closely followed by the overnight swing higher, around the 1.1420 region, might continue to act as an immediate resistance and any subsequent up-move seems more likely to remain capped at a five-month-old descending trend-line hurdle, near the 1.1445-50 region.”

“On the flip side, 38.2% Fibonacci retracement level of the 1.1514-1.1234 recent downfall, around the 1.1340 region, might act as immediate support, which if broken decisively might accelerate the slide further towards the 1.1300 handle, coinciding with 23.6% Fibonacci retracement level,” Haresh adds further.

Key Notes

Eurozone: Downside risks to core inflation - TDS

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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).