German CPI Preview: What to Expect of EUR/USD?

The EUR/USD pair is seen attempting a tepid-bounce from session troughs amid a broadly higher US dollar and risk-on rally in the European equities. Attention now turns towards the German CPI report due ahead of the US open for further impetus on the EUR.

Firmer regional y/y CPI readings point to an upbeat nationwide print

The German inflation data is up for release later this session, with the CPI figures expected to remain muted in Sept, after no growth posted a month ago, while adding 0.5% annually, compared to the 0.3% result reported in August.

Germany's regional CPIs released earlier today painted a better picture of the harmonized German CPI report, with Brandenburg inflation for the month of Sept MoM coming in at +0.4% vs -0.3% prev, while the YoY was +0.7% vs 0.1% prev. In Hesse, MoM came in unchanged as prev, with YoY at +0.6% vs +0.3% prev. Meanwhile, in Bavaria, the MoM came in at +0.2% vs 0.0% prev, with YoY at +0.8% vs +0.5% prev. 

However, the German CPI report is expected to have virtually no impact on the EUR/USD pair, as the main risk event for today remains the US GDP data, while Fedspeaks will also remain in the spotlight.

EUR/USD Technical Levels

At 1.1220, the pair finds the immediate resistance 1.1262 (Sept 28 high). A break beyond the last, doors will open for a test of 1.1286 (Sept 15 high) and from there to 1.1300 (round figure). On the flip side, the immediate support is placed at 1.1203 (hourly 200-SMA) below which 1.1145 (static support) and 1.1119 (Sept 21 low) could be tested.