When is US CPI report and how could it affect EUR/USD?

US CPI Overview

Thursday's US economic docket highlights the release of the US consumer inflation figures for October, scheduled later during the early North American session at 13:30 GMT. The headline CPI is expected to rise by 0.2% during the reported month, matching the reading in September. Meanwhile, the yearly rate is anticipated to have edged down to 1.3% from the previous month's reading of 1.4%. Conversely, the core CPI (excluding energy and food costs) is anticipated to have risen to 1.8% YoY during October from 1.7% previous.  

How could it affect EUR/USD?

Given the recent shift in the Fed's policy of allowing inflation to overshoot the 2% target, the hotter-than-expected inflation report is unlikely to impress the USD bulls or provide any meaningful impetus to the EUR/USD pair. Moreover, concerns about the potential economic fallout from the continuous surge in new coronavirus infections in the United States have revived hopes for additional fiscal stimulus measures. This, in turn, should further hold the USD bulls from placing any aggressive bets. Hence, the market reaction is more likely to be muted ahead of scheduled speeches by the Fed Chair Jerome Powell and the ECB President Christine Lagarde later during the US session.

Meanwhile, Yohay Elam, FXStreet's own Analyst offered a brief technical outlook and provided important technical levels to trade the EUR/USD pair: “Euro/dollar is trading above the 50, 100 and 200 Simple Moving Averages on the four-hour chart – but only just. Momentum has turned to the downside, while the Relative Strength Index is stable. All in all, the picture is stable. Some resistance is at the daily high of 1.1790, followed by 1.1835, which capped EUR/USD on Wednesday. The next lines to watch are 1.1860 and 1.19. Support is at 1.1740, the daily low, followed by 1.17 that held it back in late October. The next lines to watch are 1.1650 and 1.1620.”

Key Notes

  •  US Initial Jobless Claims and CPI Previews: The linkages are gone

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  •  EUR/USD Price Analysis: Further gains target 1.1880 ahead of 1.1920

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).