Forecast: How will U.S. CPI report impact EUR/USD?

NEW YORK (Forex News Now) – The Bureau of Labor Statistics is due on Friday to release a key monthly report on U.S. consumer price inflation, in one of the day’s major FX news events.

In the report, the bureau is expected to say that its core Consumer Price Index, which excludes food and energy items, held steady at 0.1 percent in June from a month earlier, according to two global forex news outlets.

The bureau is scheduled to publish the data at 12:30 P.M. GMT; as such, the report is likely to dominate European afternoon 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 the high of May 3, 1.3332.

Should the index show zero growth, or even a drop, the currency pair could be could pushed toward support around Thursday’s low, 1.2708.