When is the flash German HICP data and how it could affect EUR/USD?

Flash German HICP data Overview

The preliminary German Harmonized Index of Consumer Prices (HICP) data for September is due for release today at 12:00 GMT. The Federal Statistics Office of Germany is expected to show that inflationary pressures in the economy rose at an annual pace of 2.2%, faster than 2.1% in August. On a monthly basis, price pressures are expected to have grown steadily by 0.1%.

Earlier in the day, the inflation data from six states of Germany showed that price pressures grew at a faster pace in five out of six regions on an annualized basis, except in Saxony where yearly Consumer Price Index (CPI) data rose at a steady pace of 2.2%.

The impact of the preliminary German HICP data for September will be significant on market expectations for the European Central Bank’s (ECB) monetary policy outlook, given that the German economy is the largest nation of the Eurozone in terms of population and trade.

On Wednesday, the Eurostat will publish the preliminary Eurozone HICP data for September.

How could the flash German HICP data affect EUR/USD?

EUR/USD extends its winning streak for the third trading day on Tuesday. The major currency pair trades 0.2% higher to near 1.17650 during the European trading session.

The 20-day Exponential Moving Average (EMA) flattens around 1.1735, suggesting that the near-term trend is sideways.

The 14-day Relative Strength Index (RSI) oscillates inside the 40.00-60.00 range, indicating indecisiveness among investors.

Looking up, EUR/USD pair could rise towards the psychological level of 1.2000 if it will break above the four-year high around 1.1920. On the downside, the September low around 1.1600 will be key support zone for the pair in case the pair slides below the September 12 low of 1.1700.