When is Eurozone flash CPI and how could affect EUR/USD?

Eurozone CPI flash estimate Overview

Eurostat will publish the euro zone's inflation first estimate for April at 09.00GMT today. Consumer prices are expected to show an increase to 1.8% on a yearly basis, following a 1.5% reading seen previously. While the core figures are also expected to rise to 1% versus 0.7% last.

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?

If the CPI comes weaker-than-expected, it would knock-off EUR/USD back towards 1.0850 levels. On the other hand, a stronger CPI data could lift the rate back above 1.09 handle, as the bulls would eye a test of 1.0950 barrier.

Key notes

Eurozone CPI to surge to 1.8% y/y for April - TDS

Eurozone: Inflation to likely increase to 1.8% y/y in April – Danske Bank

About Eurozone CPI flash 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).