Forecast: How will U.S. import prices data impact EUR/USD?

NEW YORK (Forex News Now) – The U.S. Bureau of Labor Statistics is due on Wednesday to publish a key report on import prices, in one of the day’s major realtime FX news events.

The bureau is expected to say that U.S. import prices dropped 0.1 percent in September from a month earlier, after rising 0.6 percent in August, two currency market trading news outlets reported.

The bureau is scheduled to release the report at 12:30 P.M., GMT; as such, the data is likely to dominate European afternoon currency market trading – alongside a report from Canada on house prices.

According to EUR USD analysis, if the data show a greater-than-expected decline in import prices, EUR/USD could be lifted toward resistance around the 8-month high of Oct. 7. 1.4029.

But if the report shows no decline, or even an increase in prices, the currency pair could be pushed toward support around the low of Oct. 5, 1.3637.