When is the US CPI report and how could it affect EUR/USD?

US November CPI Overview

Wednesday's US economic docket highlights the release of the latest consumer inflation figures, due later during the early North-American session at 13:30GMT. The headline CPI is anticipated to have edged higher by 0.2% MoM in November as compared to a strong reading of 0.4% recorded in the previous month, lifting the yearly rate to 2.0% from 1.8% in October. Meanwhile, core CPI - excluding food and energy costs - is anticipated to have increased by 0.2% MoM, matching previous, and the annual core inflation is also seen holding steady at 2.3%.

How could it affect EUR/USD?

Barring any knee-jerk reaction, the data seems likely to provide any meaningful impetus to the EUR/USD pair and is likely to be overshadowed by some repositioning trade ahead of the highly anticipated FOMC monetary policy decision, due later during the US session on Wednesday.

Meanwhile, Yohay Elam, FXStreet's own analyst provided some important technical levels to trade the major: “EUR/USD has significant support at 1.1059, which is the convergence of the Fibonacci 38.2% one-month, the 50-day Simple Moving Average, the Pivot Point one-day Support 2, the Bollinger Band one-day Middle, and the SMA 100-4h. Looking down, some support awaits at 1.1006, where the previous week's low and the PP one-week Support 1.”

“Resistance is closer but weaker. At 1.1090, EUR/USD is mired in a dense cluster of lines, including the Fibonacci 38.2% one-day, the BB 15min-Lower, the Fibonacci 23.6% one-week, the Fibonacci 23.6% one-day, the SMA 5-4h, the BB 15min-Middle, the SMA 50-15m, SMA 5-1h, and more. Further up, 1.1180 is the upside target. It is the confluence of the PP one-week Resistance 2 and the previous month's high.”

Key Notes

   •   US Consumer Price Index November Preview: Inflation nostalgia

   •   EUR/USD Forecast: Fearful of the Fed and Trump's tariffs after setting a lower high

   •   EUR/USD under pressure below 1.1100 ahead of US CPI, Fed

About the US CPI

The Consumer Price Index released by the US Bureau of Labor Statistics is a measure of price movements by the comparison between the retail prices of a representative shopping basket of goods and services. The purchasing power of USD is dragged down by inflation. The CPI is a key indicator to measure inflation and changes in purchasing trends. Generally speaking, a high reading is seen as positive (or bullish) for the USD, while a low reading is seen as negative (or Bearish).