Forecast: How will euro zone CPI data impact EUR/USD?

NEW YORK (Forex News Now) – The EU statistics agency is due on Monday to release a key monthly report on consumer price inflation in the euro zone, in one of the day’s major FX news events.

Eurostat, the agency, is expected to say that its Consumer Price Index rose 1.7 percent in July from the same period a year earlier, according to two global forex news outlets.

The agency is scheduled to publish the data at 9:00 A.M. GMT; as such, the report is likely to dominate European morning currency trading.

According to forex analysis, if the index rises at a faster pace than forecast, the report could lift EUR/USD toward resistance around last Thursday’s high, 1.2932.

Should the index show zero growth, or even a drop, the currency pair could be could pushed toward support around the low of July 21, 1.2732.