OctaFX | OctaFX Forex Broker
Open trading account
Back

EUR/USD retreats to 1.1450 following disappointing German CPI data

  • Annual inflation rises less than expected in Germany.
  • US Dollar Index stays calm below 96.50.

With the initial reaction to the CPI data from Germany, the EUR/USD pair pulled away from the weekly highs that it set earlier in the session at 1.1474 and tested the 1.1450 handle. As of writing, the pair was trading at 1.1455, still up 0.25% on the day.

According to the preliminary inflation report published by the Destatit today, the inflation, as measured by the Consumer Price Index (CPI), in Germany is expected to rise 1.7% on an annual basis in December following November's 2.3% reading. This figure also missed the analysts' estimate of 1.9%. "In December 2018, the harmonised index of consumer prices for Germany, which is calculated for European purposes, is expected to increase by 1.7% year on year," the Destatis added in its publication.

Meanwhile, the US Dollar Index, which fell to a fresh weekly low at 96.19 earlier in the day, struggles to make a meaningful recovery and allows the pair to float in the positive territory. At the moment, the DXY is down 0.28% on the day at 96.30.

Later in the session, pending home sales, new home sales, and Chicago PMI will be the last data releases of the year from the United States.

Technical levels to consider

The initial support for the pair aligns at 1.1430 (daily low) ahead of 1.1380 (20-DMA) and 1.1340 (Dec. 26 low). On the upside, resistances could be seen at 1.1465/75 (100-DMA/daily high), 1.1500 (psychological level) and 1.1550 (Oct. 22 high).

Germany: Annual CPI (preliminary) drops to 1.7% in December vs 1.9% expected

"The inflation rate in Germany as measured by the consumer price index is expected to be 1.7% in December 2018," the Destatis reported on Friday. Key
Read more Previous

EUR/GBP Technical Analysis: Tests 23.6% Fibo. level support on softer German CPI

   •  The cross once again struggled to make it through the 0.9050-60 supply zone and fell to 23.6% Fibo. level of this week's up-move on softer Germa
Read more Next
Start livechat