Preliminary inflation data in the euro area

• Core Consumer Price Index (CPI) (y/y), fact 1.2%, forecast 1.0%.
• Consumer Price Index (CPI) (y/y) (Apr), fact 1.7%, forecast 1.6%.

Preliminary inflation data in the eurozone in April showed a more noticeable increase than expected, indicating an unexpected increase in the consumer price index and a slowdown in the downward trend of this indicator.

Fig. 1. Eurozone consumer price index (CPI) (y) chart 

Despite the very optimistic expectations for the euro area, the single currency reacted very discreetly to the published data. Such a restrained market reaction is associated with the general strengthening of the US dollar. It is also worth noting the general correction of positions before the weekend and upcoming employment data in the United States, which also holds back the market.

EUR/USD pair remains in a downward channel, limited to resistance: 1.1180 and 1.1200, support is located at the levels: 1.1130 and 1.1110.

Fig. 2.  EUR/USD chart. Current price – 1.1160

Read also: “ZIGZAG  not simple properties of a simple indicator”

Hanzenko Anton

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