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

US December CPI Overview Today's US economic docket highlights the release of the latest consumer inflation figures, due for release later during the  |  11/01/2019 12:34

US December CPI Overview

Today's US economic docket highlights the release of the latest consumer inflation figures, due for release later during the early North-American session at 1330GMT. The headline CPI is anticipated to have contracted by 0.1% m/m in December, while the yearly rate is seen holding steady at 2.2%. Meanwhile, core CPI, which excludes volatile food and energy prices, is forecasted to edge higher by 0.2% m/m, similar pace as recorded in November, and remain at 2.2% y/y rate during the reported month.

Deviation impact on EUR/USD

Readers can find FX Street's proprietary deviation impact map of the event below and as observed, the reaction in case of a relative deviation of +0.98 to -1.25 in the core CPI print is likely to be in the range of 24-26 pips during the first 15-minutes and could stretch to 68-71 pips in the following 4-hours.

How could it affect EUR/USD?

Yohay Elam, FXStreet's own Analyst offers important technical levels to watch out for: "the pair is capped at 1.1542 where we see a dense cluster including the Bollinger Band one-day Upper, the Fibonacci 61.8% one-day, the Pivot Point one-month Resistance 1, the BB 1h-Upper, and the BB 15m-Upper. If it breaks higher, the next resistance line is around 1.1626 which is the convergence of the PP one-month R2, the Fibonacci 161.8% one-day, and the Simple Moving Average 200-one-day."

"Support awaits at 1.1487 where we see the previous day's low, last month's high, the SMA 100-one-day, the Fibonacci 61.8% one-week, and the SMA 100-1h. Further support is at 1.1434 which is the confluence of the PP one-day S2, the SMA 100-4h, and the Fibonacci 23.6% one-month," he added further.

Key Notes

   •  US CPI Preview: Headline and core inflation stable

   •  EUR/USD Forecast: Rising in the uptrend channel, fueled by the Fed

   •  EUR/USD keeps the trade above 1.1500 ahead of US CPI

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).
 

Share

Popular News

Show More Popular News

Market Insight's Views

Market Insight analyses will provide both fundamental and technical comprehensions on FX
and other asset classes for Market Insight viewers

RISK WARNING

The information provided herein is for general informational and educational purposes only. It is not intended and should not be construed to constitute advice.

If such information is acted upon by you then this should be solely at your discretion and GKFX will not be held accountable in any way.

  • ForexF
  • IndicesI
  • CommoditiesC
        Back

        Login to Market Insight Account

        Your Market Insight account gives you access to the tools that we offer our customers including our
        Technical Studies & Sentiment for your accounts.

        Forgot Password?

        Don't you have a Market Insight account? With a few easy steps you can easily register to Market Insight

        Create a Market Insight's Account

        Your Market Insight account gives you access to the tools that we offer our customers including our Technical Studies & Sentiment for your accounts.

        register_ty

        Thank you!

        Welcome to Market Insight family!

        You have succesfully completed the registration.
        We will send you an e-mail to give you some
        instructions and our Terms and Conditions!
        Our account representatives will be contacting you as
        soon as possible. If you have any further questions
        please do not hesitate to mail us via info@marketinsight.com