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 steady at 0.1% m/m in October, while edging slightly lower to 1.7% annually, compared to the 1.8% result reported in September.

Germany's regional CPIs released earlier today reflected a gloomy 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 0.0% versus +0.1% prev. In Hesse, MoM arrived at -0.2%, versus +0.3% prev. Meanwhile, in Bavaria MoM also ticked lower to -0.1%, versus +0.2% last. In Saxony, October inflation MoM stood at 0.0% versus +0.2% previous, while Baden-Wuerttemberg’s came in at MoM -0.2% +0.3% prior.

How could it affect EUR/USD?

On an upside surprise, we could see the EUR/USD pair regain 1.1659/63 (Oct 27 high/ 5-DMA), which could open doors for a test of 1.1700 (round number) en route 1.1722 (10-DMA). On the flip side, if the readings come in below expectations, the rate could stall its recovery mode and revert towards 1.16 handle, below which a test of 1.1575 (3-month lows) is imminent, paving the way towards 1.1500 (psychological levels).

Key notes

EUR/USD extends the renewed uptick towards 1.1650, eyes on German CPI

European FX Outlook: German retail sales and CPI highlight Monday

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).