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

German Prelim CPI Overview

Today's Eurozone economic docket headlines the Harmonized German Preliminary Consumer Price Index (CPI) data, up for release later this session at 1300 GMT. The headline CPI is expected to come in at +0.4% MoM and the yearly rate is seen higher at 1.4% in December.

The rebound in Germany's regional CPIs reported earlier today points to an upbeat picture of the harmonized German CPI readings.

In Hesse, MoM inflation for the month of December arrived at +0.5%, versus -0.8% prev. Meanwhile, in Bavaria, the December inflation came in at +0.5% MoM versus -0.8% last. In Saxony, December inflation MoM jumped 0.6% versus -0.8% previous, while Brandenburg’s came in at +0.5% MoM vs. -0.8% prior. North Rhine Westphalia December 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: “The currency pair is holding above 1.1150, which capped the pair in early September and was also a swing high afterward. Moreover, it nearly converges with the 200 SMA. Further down, 1.1130 and 1.1110 also held EUR/USD down during December. They are followed by 1.1065, which provided support around Christmas.”

“Looking up, 1.1175 was a swing high in mid-December. It is followed by 1.12, a round number that provided support in the dying days of 2019. Next, we find 1.1220 and 1.1240, which capped it around the same time. he adds further.

Key Notes

EUR/USD: Bears target 200-DMA near 1.1140 ahead of German CPI

Germany: HICP inflation likely to rise to 1.5% in December – TDS

Daily Technical Outlook on Major - EUR/USD

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).