Eurozone final CPIs estimate overview
Eurostat will publish the Eurozone's inflation final estimate for December at 1000GMT today. Consumer prices are seen arriving at 1.6% on a yearly basis, confirming the flash estimate while the core figures are seen unchanged at 1%.
On a monthly basis, the CPI data for December is expected to come in at 0.0% versus -0.2% previous.
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?
Technically, “the ongoing slide seems poised to continue dragging the pair further towards testing the 1.1350-40 confluence support, comprising of 23.6% Fibonacci retracement level of the 1.1815-1.1216 downfall and the lower end of over two-month-old ascending trend-channel. A follow-through selling would mark a near-term bearish breakdown, turning the pair vulnerable to break through the 1.1300 handle and head towards challenging multi-month lows, around the 1.1215 region. On the flip side, any meaningful recovery back above the 1.1400 handle might now confront some fresh supply near 38.2% Fibonacci retracement level, around the 1.1440-45 region, above which the pair is likely to aim towards reclaiming the key 1.1500 psychological mark,” Haresh Menghani, Analyst at FXStreet explains.
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About Eurozone final 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).