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 are expected to deflate sharply to -0.7% m/m in January while steadying at 1.6% annually.

Germany's regional CPIs released earlier today painted a bleak outlook of the harmonized German CPI data due to be reported later today. North Rhine Westphalia inflation for the month of January MoM came in at -0.6% versus +0.5% prev. In Hesse, MoM arrived at -0.8%, versus +0.6% prev. Meanwhile, in Bavaria MoM also came in lower at -0.7% versus +0.5% last. In Saxony, January inflation MoM stood at -0.8% versus +0.6% previous, while Baden-Wuerttemberg’s came in at MoM -0.7% vs. +0.6% prior.

How could it affect EUR/USD?

According to Valeria Bednarik, Chief Analyst at FXStreet, technically, “the pair has an immediate resistance around 1.2430, with gains beyond the level exposing the 1.2460/80 region. Below 1.2390, supports, on the other hand, came at 1.2340, and the 1.2300 level, this last, the 38.2% retracement of the mentioned rally.”

Key notes

Eurozone: Focus on German inflation data – TDS

German inflation figures amongst market movers today – Danske Bank

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).