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

The German prelim CPI Overview

The German inflation data is up for release later this session at 1200GMT, with the headline CPI expected to hold stable at +0.5% m-o-m in March, while rising to 1.7% annually, compared to a reading of 1.4% reported in the previous month. Consensus estimates also point to an optimistic outcome of the harmonized German CPI and is anticipated to come in at 1.6% as against 1.2% in February. 

How could it affect EUR/USD?

A softer reading might force the pair to extend this week's corrective slide and drop towards testing the 1.2240-35 strong horizontal support. Meanwhile, in-line/better-than-expected reading could provide a minor boost to the shared currency but is unlikely to significantly change market sentiment. Hence, any data-led up-move is likely to be short-lived and might quickly run into some fresh offers near the 1.2335-40 supply zone. 

Key notes

   •  Germany: Expect to see a rebound in the headline inflation rate – Rabobank
   •  EUR/USD Forecast: Capped by the 50-day SMA, no help from higher German inflation

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).