The economic downturn in the eurozone underlines the importance of preliminary data on the consumer price index in Germany. Weak regional indicators point to the gloomy picture of CPI in Germany. It is expected that the general consumer price index will fall by 0.6% in November compared with the previous month, while the annual figure will increase by 1.3% compared with 1.1% in October. In Hesse, Brandenburg and Bavaria, inflation in November was -0.8% versus + 0.1% in October. Consumer price index in North Rhine-Westphalia reached -0.7% in November against +0.1% earlier.
How can this affect EUR/USD? Of course, the euro will become cheaper against the background of these data. If you add to them also the current monetary policy of the ECB, the decline can be significant. Key technical levels for EUR/USD trading: Support is expected to reach 1.0990, followed by 1.0940 - October low. A drop to 1.0879 is possible towards the end of the year. The resistance of the pair can meet at the level of 1.1035, and a more significant limit is expected at the level of 1.1050. The 1.1100 mark is also a good level for observation. The German Consumer Price Index, published by Statistisches Bundesamt Deutschland, shows the change in the average price of all goods and services. It is the primary indicator for measuring inflation and changes in consumer trends. A high value is positive (or bullish) for the euro, and a low value is negative (or bearish).
