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

German Prelim CPI Overview

Today's Euro-zone economic docket highlights the release of German prelim CPI data, up for release later this session at 1300 GMT. The headline CPI is expected to come in at 0.5% m/m and the yearly rate is expected to tick higher to 1.5% in February from 1.4% previous. 

Meanwhile, the Harmonized Index of Consumer Prices (HICP) - an indicator of inflation and price stability for the European Central Bank (ECB), is also expected to stay unchanged at 1.7% y/y during the reported month.

The rebound in Germany's regional CPIs released earlier today point to a rosy picture of the harmonized German CPI readings due to be reported later today. In Hesse, MoM inflation for the month of February arrived at +0.5%, versus -1.0% prev. Meanwhile, in Bavaria, the February inflation came in at +0.5% MoM versus -1.0% last. In Saxony, February inflation MoM ticked higher to +0.3% versus -1.0% previous, while Brandenburg’s came in at +0.6% MoM vs. -0.5% prior. North Rhine Westphalia February CPI arrived at+0.5% MoM vs. -0.7% prior.

How could it affect EUR/USD?

FXStreet’s Analyst Yohay Elam offered key technical levels for trading EUR/USD on the CPI release: “Resistance awaits at 1.1385 which capped the pair earlier. More significant resistance is at 1.1405 that held EUR/USD down twice in recent days. 1.1430 and 1.450 demarcated higher trading ranges last seen in January.”

“Support is at 1.1360 that provided support on Wednesday. The next cushion is at 1.1345 seen earlier in the week. 1.1330 and 1.1315 worked as support in mid- February,” he adds further.

Key Notes

EUR/USD Forecast: Recent up-move already seems to have run out of steam, German CPI/US GDP eyed

Eurozone: Focus on inflation data - TDS

EUR/USD to remain underpinned by the 1.1216 November low - Commerzbank

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).