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 1300GMT, with the CPI figures expected to tick higher to 0.3% m/m in November, while gaining 1.7% annually, compared to the 1.6% result reported in October.
Germany's regional CPIs released earlier today painted a rosy picture of the harmonized German CPI report due to be reported later today. North Rhine Westphalia inflation for the month of October MoM came in at +0.3% versus 0.0% prev. In Hesse, MoM arrived at +0.4%, versus -0.2% prev. Meanwhile, in Bavaria MoM also rebounded to +0.4%, versus -0.1% last. In Saxony, October inflation MoM stood at 0.0% versus +0.2% previous, while Baden-Wuerttemberg’s came in at MoM +0.4% -0.2% prior. Brandenburg CPI arrived at +0.4% MoM versus +0.1% previous.
How could it affect EUR/USD?
According to Valeria Bednarik, Chief Analyst at FXStreet, “to gain upward momentum, the pair would need to accelerate through the 1.1920 static resistance, en route to retest the mentioned high and ahead of 1.2000. To the downside, the immediate support comes at the 1.1820/30 price zone, with a break below it signaling further slide toward 1.1770.”
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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).