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 1200 GMT, with the CPI figures expected to tick down to 0.1% m/m and 2.0% y/y in August.

The softer tones seen in Germany's regional CPIs released earlier today paint a bleak picture of the harmonized German CPI readings due to be reported later today. In Hesse, MoM inflation for the month of August arrived at -0.1%, versus +0.4% prev. Meanwhile, in Bavaria stood at +0.2% MoM versus +0.4% last. In Saxony, Aug inflation MoM came in at 0.0% versus +0.4% previous, while Brandenburg’s stood at -0.1% MoM vs. +0.4% prior. For North Rhine Westphalia, the August CPI readings edged down to +0.1% vs +0.3% MoM prior.

How could it affect EUR/USD?

Yohay Elam, Analyst at FXStreet notes that technically on the 4-hour chart, “1.1735 was the high point on Wednesday and may serve as an initial hurdle. More robust resistance awaits at 1.1750, a quadruple top from July. 1.1795 capped the pair in July and 1.1850 was the swing high on June 14th.  Immediate support awaits at the current daily lows of 1.1685. 1.1655 was a low point earlier in the week, and 1.1625 capped the pair in mid-August. Further down, 1.1595 and 1.1530 are notable.” 

Key Notes

EUR/USD falls back below 1.1700 handle amid re-emerging Turkish crisis

Germany: No change in inflation numbers for August? – Rabobank

German HICP in focus today – Nomura

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).