German CPI Preview: what to expect of EUR/USD

Germany will publish its preliminary inflation figures for the month of October later in the European afternoon. Market consensus expects consumer prices measured by the CPI to rise at an annualized 0.8% during this month, while the broader HICP gauge is expected to gain 0.6% YoY.

If consensus materializes, inflation figures will confirm its upside trend after advancing at an annualized 0.3% in August and 0.5% in September.

Positive results today would surely add to the renewed upbeat momentum in EUR, following positive readings from flash PMIs in Euroland and German IFO indicator.

Regarding FX, EUR/USD faces near-term strong resistance in the mid-1.0900s, where coincides July’s low, the 2014-2016 resistance line and Tuesday’s spike. Further north, the 1.1015/25 band will come back to the radar, where sit the 20-day sma and the 7-month resistance line.