When is the German Prelim CPI and how could it affect EUR/USD?

German Prelim CPI Overview

Thursday's Eurozone economic docket highlights the release of Harmonized German prelim CPI data, scheduled for release later during the mid-European session at 1300 GMT. Softer regional CPIs released earlier this Thursday point to a bleak picture of the harmonized German CPI readings. The headline CPI is expected to fall 0.6% MoM in November, while the yearly rate is seen ticking higher to 1.3% as compared to 1.1% previous.

In Hesse, MoM inflation for November arrived at -0.8%, versus +0.1% previous. In Bavaria, the November inflation came in at -0.8% MoM versus +0.1% last. Also in Brandenburg, November inflation edged lower to -0.8% MoM versus a flat reading recorded in the previous month. North Rhine Westphalia November CPI arrived at -0.7% MoM versus +0.1% prior.

How could it affect EUR/USD?

FXStreet’s Analyst Yohay Elam offered key technical levels for trading EUR/USD on the CPI release: “Support awaits at 1.0990, and it is followed by 1.0940, which was a low point in October. Further down, the 2019 trough of 1.0879 expects EUR/USD.”

“Resistance is at 1.1035, where the downtrend resistance began several days ago. A more considerable cap awaits at 1.1050, which provided support last week. The round number of 1.11 held the common currency down last week and is the next level to watch,” Yohay added further.

Key Notes

EUR/USD trades around 1.10 ahead of data

EUR/USD: Bulls need a big beat on German CPI

EUR/USD Forecast: Double trouble on Thanksgiving Day, outlook bearish

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).