When is Eurozone flash CPI and how could affect EUR/USD?

Eurozone CPI flash estimate Overview

Eurostat will publish the Euro zone's inflation first estimate for May at 09.00GMT today. Consumer prices are expected to show a decrease to 1.5% on a yearly basis, following a 1.9% reading seen previously. While the core figures are also expected to decline to 1.0% versus 1.2% last.

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?

If the CPI comes weaker-than-expected, it could knock-off EUR/USD back towards daily lows of 1.1165 levels, a break below which will open doors for two-week lows struck yesterday at 1.1108. On an upside surprise, the spot could regain 1.12 handle, eyeing a test of the immediate resistance located at 1.1220.

Key notes

Euro-area headline HICP inflation figure likely to decrease to 1.5% - Danske Bank

Euro area HICP: Headline rate to fall back to 1.6% y/y from April’s 1.9% - RBC CM

About Eurozone CPI flash 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).