When are the Eurozone Preliminary CPIs and how could they affect EUR/USD?

Eurozone Preliminary CPIs overview

Eurostat will publish the first estimate of Eurozone inflation figures for March at 0900 GMT on Wednesday.

The headline Consumer Price Index (CPI) is anticipated to come in higher at 1.3% YoY while the core inflation is also seen up by 1.2% YoY during the reported month.

Inflation remains central to the ECB’s objective. It aims for an annual rate of inflation of “below, but close to, 2% over the medium term”, as measured by the Harmonised Index of Consumer Prices (HICP). With rising inflation expectations, as reflected by the surge in global yields, the Eurozone CPI report will be closely eyed.

How could affect EUR/USD?

Heading into the Eurozone CPI release, EUR/USD attempts a bounce from four-month lows of 1.1704 reached earlier in the Asian session. The pullback in the US dollar index could be attributed to the recovery in the major.

Haresh Menghani, FXStreet’s own Analyst, notes: “Any meaningful bounce might still be seen as a selling opportunity and remain capped near the mentioned confluence support breakpoint, around the 1.1760 zone.”

“On the flip side, some follow-through selling below the 1.1700 mark now seems to accelerate the fall further towards the 61.8% Fibo. level, around the 1.1620-15 region. This is closely followed by the 1.1600 mark, which if broken should pave the way for the continuation of the ongoing bearish trend. The pair might then aim to challenge the next relevant support near the key 1.1500 psychological mark,” Haresh adds.

Key notes

EUR/USD: Daily recommendations on major

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EUR/GBP: Near-term forecast cut to 0.8400 from 0.8450 – Credit Suisse

About Eurozone Preliminary 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).