EMU’s CPI/GDP Preview: what to expect of EUR/USD

Advanced inflation figures in the euro zone and GDP results for the second quarter are due later today. Prior surveys see headline consumer prices tracked by the CPI rising at an annualized 0.1% during July, while Core CPI is expected to rise 0.9% on a yearly basis.

Regarding GDP figures, consensus amongst traders expect the bloc’s economy to expand 0.3% inter-quarter in Q2 and 1.5% YoY vs. previous readings at 0.6% and 1.7%, respectively.

In the FX space, EUR/USD remains underpinned by the renewed softness around the greenback, advancing to the 1.1120 area from Monday’s troughs in the mid-1.0900s, although the upside momentum seems to have ebb a tad as of late. Relevant resistance emerges around recent highs in the 1.1160/80 band, ahead of the 1.1260 region, where is located the Fibo retracement of the May-June down move and the base of the 7-month rising channel.