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 1200 GMT. The headline CPI is expected to come in at +0.1% MoM and the yearly rate is seen lower at 1.4% in March.
The deceleration in Germany’s regional CPIs reported earlier today points to a bleak picture of the harmonized German CPI readings.
In Hesse, MoM inflation for the month of March arrived at -0.3%, versus +0.6% prev. Meanwhile, in Bavaria, the March inflation came in at 0.0% MoM versus +0.7% last. In Saxony, March inflation MoM rose by 0.1% versus +0.5% previous while Brandenburg’s came in at +0.2% MoM vs. +0.5% prior. North Rhine Westphalia March CPI arrived at 0.0% MoM vs. +0.5% prior.
How could it affect EUR/USD?
NDDFX’s Analyst Pablo Piovano offered key technical levels for trading EUR/USD on the CPI release: “A sustainable breakout of the 200-day SMA, today at 1.1081, should open the door to the continuation of the upside momentum to, initially, the December’s 2019 high at 1.1239. Further north, EUR/USD is expected to face interim hurdles at Fibo retracements at 1.1311 and 1.1448, all ahead of the 2020 high in levels just shy of 1.15 the figure.”
“In case sellers regain control of the markets, a move to the 55-day SMA at 1.1008 should return to the investors’ radar ahead of a potential visit to January’s low in the 1.0990 zone,” Pablo added.
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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).