When is the Eurozone flash HICP data for February and how could it affect EUR/USD?
Eurozone flash HICP Overview
The Eurozone preliminary Harmonized Index of Consumer Prices (HICP) data for February is scheduled to be published today at 10:00 GMT.
According to preliminary estimates, the Eurostat will show that both headline and the core HICP – which excludes volatile components like food, energy, alcohol, and tobacco – grew at a steady pace of 1.7% and 2.2% Year-on-Year (YoY).
The Eurozone headline HICP has cooled down in the last two months from 2.1% YoY in November. Therefore, signs of further slowdown in the HICP growth rate could prompt dovish European Central Bank (ECB) expectations. On the contrary, soft or higher-than-expected figures are unlikely to bring a dramatic change in the ECB's monetary policy expectations.
ECB President Christine Lagarde said in her statement before the Committee on Economic and Monetary Affairs (ECON) of the European Parliament on February 26 that she is confident about inflation stabilizing at the central bank’s 2% target in the medium term and retained a data-dependent approach. Lagarde said, “I am really convinced that we should maintain data dependent approach.”
How could Eurozone inflation data affect EUR/USD?
EUR/USD trades 0.2% lower at around 1.1667 ahead of the Eurozone inflation data release. The near-term bias is bearish as the pair trades below the 20-day Exponential Moving Average (EMA, which is near 1.1788.
The 14-day Relative Strength Index (RSI) sliding below 40.00 signals the onset of bearish momentum, pointing to room for further downside extension before selling pressure becomes exhausted.
Initial support stands at the rising support trend line around 1.1640 that had guided the advance from 1.1468. The scenario of a trend-line break would expose the price to a deeper pullback toward 1.1600. On the upside, immediate resistance emerges at the February 19 low of 1.1742, followed by the 20-day EMA around 1.1788. A further break above the average would strengthen the odds of further upside toward 1.1820
(The technical analysis of this story was written with the help of an AI tool.)
Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.
You may also like
After the Nasdaq evaporated over $2 trillion in a single month, Wall Street is starting to look for buying opportunities! Deutsche Bank upgrades its technology rating, and Goldman Sachs’s “seven signals” outline the bull narrative.
Deutsche Bank is optimistic about U.S. tech stocks, overturning its downgrade rating from three weeks ago. The bank claims that the large sell-off has created attractive buying opportunities and that most of the risks related to artificial intelligence have already been excessively priced in by the market.
NEAR Enters Bitwise Large-Cap Indexes in October Rebalance
Ethena Pay Adds Earn+ Through Aave V4 Lending on Avalanche
DoorDash (DASH.US) Outperforms Nasdaq Amid Tech Stock Selloff! Officially Announces $17 Billion Acquisition of Instacart; Will Grocery Delivery and Retail Advertising Drive a Revaluation of Value?
The complete integration of the two major platforms may enhance their overall competitive and bargaining power in terms of delivery economics, consumer reach, and retail media monetization. Grocery retailers lacking their own delivery networks are bound to face more significant bargaining pressure, while Walmart and Target, which own Spark and Shipt, are relatively more capable of withstanding the impact.
Crypto prices
More
