EURUSD drops by 0.4% 📉

The official CPI report for Germany is published today at 1:00 PM BST. However, at 9:00 AM BST, reports from German regions were released, indicating a much larger decline in year-over-year headline inflation. The average inflation from the states dropped to 1.9%, below the ECB's target of 2.0%.

01:00 PM BST, Germany - Inflation Data for August; Expectations:

• German CPI: forecast 2.1% YoY; previous 2.3% YoY;
• German HICP: forecast 2.3% YoY; previous 2.6% YoY;
• German HICP: forecast 0.0% MoM; previous 0.5% MoM;
• German CPI: forecast 0.0% MoM; previous 0.3% MoM;

Data from the regions suggest that inflation in the eurozone has returned to the 2% target. A rate cut during the meeting scheduled for September 12 is currently priced at 103% (compared to 99% before the data). Source: XTB

Since the publication of the CPI data, the EURUSD pair has already lost over 0.4%. The pair has thus broken below the support zone marked by the 50-period EMA (blue curve on the chart, H4 interval) and the 23.6% Fibonacci retracement of the upward wave that began at the start of the month. Source: xStation