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

German Prelim CPI Overview

Today's Eurozone economic docket highlights the release of Harmonized German prelim CPI data, up for release later this session at 1200 GMT. The headline CPI is expected to come in softer at 0.3% m/m and the yearly rate is expected to tick lower to 1.4% in May from 2.1% previous. 

The rebound in Germany's regional CPIs released earlier today point to a bleak picture of the harmonized German CPI readings due to be reported later today. In Hesse, MoM inflation for the month of May arrived at +0.4%, versus +0.9% prev. Meanwhile, in Bavaria, the May inflation came in at +0.1% MoM versus +0.7% last. In Saxony, May inflation MoM ticked lower to +0.3% versus +0.9% previous, while Brandenburg’s came in at +0.3% MoM vs. +0.8% prior. North Rhine Westphalia May CPI arrived at+0.2% MoM vs. +1.0% prior.

How could it affect EUR/USD?

FXStreet’s Analyst Yohay Elam offered key technical levels for trading EUR/USD on the CPI release: “Initial support awaits at 1.1115, which was a swing low on Thursday. 1.1107, the 2019 low closely follows it. Further down, we find levels that were last seen in 2017: 1.1025 and 1.109.70.”

“Next up we find 1.1175 that was a separator of ranges earlier this week, and finally, 1.1218 that was the high point this week,” he adds further.

Key Notes

US 10-year yields hit a new 20-month low – EUR/USD rebounds above 1.1140

Trump feels tariffs are an effective way of pressuring countries

Germany: Headline HICP inflation likely to print 1.2% y/y in May - TDS

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).