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

US CPI Overview

Friday's US economic docket highlights the release of the US consumer inflation figures for August, scheduled later during the early North American session at 12:30 GMT. The headline CPI is expected to have decelerated to 0.3% during the reported month as compared to the 0.6% increase recorded in July. Meanwhile, the yearly rate is anticipated to have edged higher to 1.2% from the previous month's reading of 1.0%. The core CPI (excluding energy and food costs) is anticipated to have risen 0.2% MoM and yearly rate is seen holding steady at 1.6%.  

How could it affect EUR/USD?

The EUR/USD pair was seen hovering near daily tops, above mid-1.1800s ahead of the important macro data. Given that the Fed has shown readiness to allow inflation to overshoot the 2% target for some time, hotter-than-expected print is unlikely to impress the USD bulls. Conversely, a softer reading might be enough to exert some additional pressure on the already weaker greenback and assist the pair to build on this week's rebound from the 1.1750 support area.

Meanwhile, Pablo Piovano, FXStreet's own Analyst and Editor offered a brief technical outlook and provided important technical levels to trade the EUR/USD pair: “The continuation of the bullish impetus around EUR/USD could see the pair initially revisiting the August’s peak at 1.1965 ahead of another attempt to test the so far 2020 tops beyond 1.20 the figure (September 1). The RSI is navigating the 55-60 band, so there is enough room for the pair to attempt a move higher without entering into the overbought territory. On the downside, if recent lows in the mid-1.1700s are cleared on a convincing fashion, then the key contention area around 1.1700 could be exposed.”

Key Notes

   •  US CPI August Preview: Inflation gets demoted, again

   •  US CPI to rise to 1.4% YoY in August vs. July’s 1% – Scotiabank

   •  EUR/USD Price Forecast: Green light to extra gains near-term

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).