When is US CPI report and how could it affect EUR/USD?
US CPI Overview
Wednesday's US economic docket highlights the release of the US consumer inflation figures for May, scheduled later during the early North American session at 12:30 GMT. The headline CPI is expected to remain unchanged during the reported month and the yearly rate is seen easing to 0.2% from 0.3% previous. Meanwhile, the core CPI, which excludes energy and food costs, is also projected to remain flat and edge lower to 1.3% YoY in May as against the previous month's -0.4% and 1.4%, respectively.
How could it affect EUR/USD?
A surprisingly stronger reading might provide some respite to the US dollar bulls, though is unlikely to be a major game-changer. The focus remains firmly glued to the latest FOMC monetary policy update, which will play a key role in driving the near-term sentiment surrounding the greenback.
Meanwhile, Yohay Elam, FXStreet's own analyst provided important technical levels to trade the EUR/USD pair: “Resistance awaits at June's high of 1.1384, followed by levels last seen in March – 1.1410, which was a stepping stone on the way down, and 1.1495, the yearly high.”
“Support awaits at 1.1330, the daily low, followed by Tuesday's trough of 1.1240. The next levels to watch are 1.12 and 1.1150,” Yohay added further.
Key Notes
• US Consumer Price Index: The pandemic inflation decline reverses
• EUR/USD Forecast: Big breakout above 1.14? Three reasons why Powell may propel it higher
• EUR/USD Price Analysis: Resumes the upside and targets 1.1400
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).