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

The German prelim CPI Overview

The German inflation data is up for release later this session at 1300GMT, with the CPI figures expected to tick higher to 0.6% m/m in December, while easing 1.4% annually, compared to the 1.8% result reported in November.

Germany's regional CPIs released earlier today painted a rosy picture of the harmonized German CPI report due to be reported later today. North Rhine Westphalia inflation for the month of December MoM came in at +0.5% versus +0.3% prev. In Hesse, MoM arrived at +0.6%, versus +0.4% prev. Meanwhile, in Bavaria MoM also ticked higher to +0.5%, versus +0.4% last. In Saxony, December inflation MoM stood at +0.6% versus +0.3% previous, while Baden-Wuerttemberg’s came in at MoM +0.6% vs. +0.4% prior.

How could it affect EUR/USD?

According to Dr. Mário Blaščák, European Chief Analyst at FXStreet, “Technically the EUR/USD has broken the downward sloping trendline resistance and it is heading higher. After the EUR/USD manages to break $1.1960 level, the next target is likely to be the round big figure of $1.2000 before targeting a cyclical high of $1.2090. Technical oscillators turned higher with Momentum indicator pointing upwards with plenty of room on the upside. Also, the Relative Strength Index has room to go on its upward crawl.” 

Key notes

EUR/USD jump to over 3-month tops ahead of German CPI

European FX Outlook: Decelerating inflation in Germany waves 2017 Goodbye

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).