When are the Eurozone flash CPIs and how could they affect EUR/USD?

Eurozone flash CPIs estimate overview

Eurostat will publish the Eurozone's inflation first estimate for March at 09.00 GMT today. Consumer prices are seen accelerating to 1.4% on a yearly basis versus 1.1% seen previously. While the core figures are also expected to tick higher to 1.1% in the reported month.

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?

Haresh Menghani, Analyst at FXStreet explains, “Technically, a follow-through weakness below the 1.2250-40 immediate support area is likely to accelerate the fall towards the 1.2200 key level, which has been offering strong support since mid-January. A convincing drop below the mentioned support would mark a bearish break below 2-1/2-month-old trading range and confirm that the pair might have topped out in the near-term.”

“On the flip side, sustained move back above the 1.2300 handle could get extended back towards the 1.2345-50 supply zone, above which the pair could break through the 1.2400 handle and head towards retesting the 1.2475 strong hurdle en-route the key 1.2500 psychological mark,” Haresh adds.

Key Notes

Eurozone: Headline inflation likely to print 1.5% in March – Danske Bank

European FX Outlook: Eurozone inflation set to accelerate as unemployment falls

About Eurozone flash CPIs 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).