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

Eurozone flash CPIs estimate overview

Eurostat will publish the Eurozone's inflation first estimate for January at 10.00GMT today. Consumer prices are seen easing to 1.3% on a yearly basis versus 1.4% seen previously. While the core figures are also expected to soften to 1.0% in the reported month.

Deviation impact on EUR/USD

Readers can find FX Street's proprietary deviation impact map of the event below. As observed the reaction is likely to remain confined between 10 and 40 pips in deviations up to 1.5 to -3, although in some cases, if notable enough, a deviation can fuel movements of up to 50 pips.

How could affect EUR/USD?

Haresh Menghani, Analyst at FXStreet explains, “A clear break through the mentioned (1.2440) hurdle would mark a fresh break out of a bullish flag chart pattern and should assist the pair to resume with its prior appreciating move. Momentum beyond the trend-channel resistance is likely to accelerate the up-move back towards the 1.25 handle en-route multi-year highs hurdle near the 1.2535-40 region.”

“Alternatively, a sustained weakness back below the 1.2400-1.2390 region might drag the pair towards retesting the trend-channel support, currently near the 1.2320 region. A follow-through selling pressure might now turn the pair vulnerable to break below the 1.2300 handle and head towards its next support near the 1.2265 horizontal level,” Haresh adds.

Key notes

Eurozone flash CPI: Risks are skewed towards a weaker print – TDS

Eurozone: Key economic events ahead - HSBC

About Eurozone flash 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).