Created
: 2025.09.02
- English
- English
- What's Myforex
- Share
- Use tools
- Get information
- What's New
- Help center
- About us
- Customer support
- Terms and policies
-
-
PortfolioShare your portfolio and performance in real time -
Events & contestsEvents and contests held by retail brokers around the world
-
-
Real-time spread comparisonCompare spreads of major retail brokers in real time -
Volatility analysisVisualize volatility as a measure of daily market activity -
Swap point comparisonCompare buy and sell swap values for each broker by symbol -
Market rates & chartsCheck prices for all instruments offered by each broker -
IndicatorsProviding in-house developed indicators for MT4/MT5 -
Trading calculatorsCalculation tools for each broker to help you trade
-
-
World FX newsLatest news on forex and cryptocurrencies from around the world -
Broker informationTrading information of retail brokers worldwide -
MetaTrader4/5 user guideUser guide collection for the latest MetaTrader4/5 -
Economic calendarRelease calendar for indicators from official sources of major economies
When is the Eurozone Prelim HICP inflation and how could it affect EUR/USD?
World FX news
Breaking news
When is the Eurozone Prelim HICP inflation and how could it affect EUR/USD?
New
2025.09.02 16:34
2025.09.02 16:34
2025.09.02 16:34
The Eurozone Prelim HICP Overview
The Eurostat will publish the preliminary Eurozone inflation data for August later this Tuesday at 0900 GMT.
The Harmonised Index of Consumer Prices (HICP) is expected to rise 2.0% year-over-year (YoY) in August, while the core inflation is seen easing to 2.2% in the same period, compared to the previous reading of 2.3%.
Last week, the preliminary German Consumer Price Index (CPI) rose by 2.2% in August, against 2% increase in July and above market forecasts of 2.1%, though remaining close to the European Central Bank's (ECB) 2% target.
How could the Eurozone Prelim HCIP affect EUR/USD?
EUR/USD remains steady following its five-day winning streak, trading around 1.1700 ahead of the bloc's HCIP inflation data and the US ISM Manufacturing PMI.
A hotter-than-expected preliminary inflation data could support the EUR/USD pair to approach 1.1830, the highest since September 2021.
However, a softer print could put downward pressure on the EUR/USD pair to test the nine-day EMA of 1.1680, followed by the 50-day EMA at 1.1615.
Inflation FAQs
Inflation measures the rise in the price of a representative basket of goods and services. Headline inflation is usually expressed as a percentage change on a month-on-month (MoM) and year-on-year (YoY) basis. Core inflation excludes more volatile elements such as food and fuel which can fluctuate because of geopolitical and seasonal factors. Core inflation is the figure economists focus on and is the level targeted by central banks, which are mandated to keep inflation at a manageable level, usually around 2%.
The Consumer Price Index (CPI) measures the change in prices of a basket of goods and services over a period of time. It is usually expressed as a percentage change on a month-on-month (MoM) and year-on-year (YoY) basis. Core CPI is the figure targeted by central banks as it excludes volatile food and fuel inputs. When Core CPI rises above 2% it usually results in higher interest rates and vice versa when it falls below 2%. Since higher interest rates are positive for a currency, higher inflation usually results in a stronger currency. The opposite is true when inflation falls.
Although it may seem counter-intuitive, high inflation in a country pushes up the value of its currency and vice versa for lower inflation. This is because the central bank will normally raise interest rates to combat the higher inflation, which attract more global capital inflows from investors looking for a lucrative place to park their money.
Formerly, Gold was the asset investors turned to in times of high inflation because it preserved its value, and whilst investors will often still buy Gold for its safe-haven properties in times of extreme market turmoil, this is not the case most of the time. This is because when inflation is high, central banks will put up interest rates to combat it. Higher interest rates are negative for Gold because they increase the opportunity-cost of holding Gold vis-a-vis an interest-bearing asset or placing the money in a cash deposit account. On the flipside, lower inflation tends to be positive for Gold as it brings interest rates down, making the bright metal a more viable investment alternative.
Last updated
: 2025.09.02
Related articles
AUD/USD rallies to six-week highs ahead of key Australia sentiment data
2025.09.09 03:38Forex Today: The US labour market remains centre stage with NFP Revision
2025.09.09 03:33Canadian Dollar holds steady ahead of key US data
2025.09.09 01:48Dow Jones Industrial Average churns in place as traders await inflation data
2025.09.09 01:21GBP/USD climbs as Fed-BoE policy divergence fuels Pound strength
2025.09.09 00:31United States FX Today: US Dollar to face annual NFP revision
2025.09.09 00:30
FXStreet is a forex information website, delivering market analysis and news articles 24/7.
It features a number of articles contributed by well-known analysts, in addition to the ones by its editorial team.
Founded in 2000 by Francesc Riverola, a Spanish economist, it has grown to become a world-renowned information website.
Was this article helpful?
We hope you find this article useful. Any comments or suggestions will be greatly appreciated.
We are also looking for writers with extensive experience in forex and crypto to join us.
please contact us at [email protected].
Thank you for your feedback.
Thank you for your feedback.
Most viewed
Gold hits fresh record at $3,646 as Fed rate cut bets strengthen
Gold's rally extended for the second straight day on Monday, reaching a new record high of $3,646 as growing confidence that the Federal Reserve (Fed) will reduce rates at the September meeting increased. Therefore, XAU/USD trades at $3,634, up by more than 1%.
New
2025.09.09 04:12AUD/USD rallies to six-week highs ahead of key Australia sentiment data
The Australian Dollar (AUD) trades higher against the US Dollar (USD) on Monday, extending last week's rally, with AUD/USD climbing to its strongest level in six weeks, last seen in late July.
New
2025.09.09 03:38Forex Today: The US labour market remains centre stage with NFP Revision
The US Dollar (USD) added to Friday's decline as investors continued to assess the latest NFP figures, while expectations of extra rate cuts by the Federal Reserve kept the currency under scrutiny.
New
2025.09.09 03:33Silver Price Forecast: XAG/USD consolidates gains, momentum favors bulls above $41.00
Silver (XAG/USD) extended its gains for a second consecutive day on Monday, briefly touching a fresh 14-year high at $41.67 before easing slightly.
New
2025.09.09 02:14Canadian Dollar holds steady ahead of key US data
The Canadian Dollar (CAD) is holding within near-term levels on Monday, pushing USD/CAD into a sideways grind over three market sessions. Despite recent shakes on the chart and the appearance of a potential technical floor, the CAD continues to explore lower closes against the Greenback.
New
2025.09.09 01:48Dow Jones Industrial Average churns in place as traders await inflation data
The Dow Jones Industrial Average (DJIA) churned chart paper on Monday, finding a near-term floor at the 45,400 level. Investors continue to lean into bets that the Federal Reserve (Fed) will deliver an interest rate cut on September 17.
New
2025.09.09 01:21NY Fed showcases ongoing consumer inflation concerns
According to the Federal Reserve (Fed) Bank of New York, consumer inflation expectations ticked higher once again, and ongoing employment expectations also decayed.
New
2025.09.09 00:45GBP/USD climbs as Fed-BoE policy divergence fuels Pound strength
The Pound Sterling advances at the beginning of the week as traders continue to digest the recent US employment report that keeps investors' chances about an interest rate cut by the Fed. At the time of writing, the GBP/USD trades at 1.3541, up 0.26%.
New
2025.09.09 00:31United States FX Today: US Dollar to face annual NFP revision
The US Dollar starts the week on the defensive ahead of the release of the preliminary estimate of the annual revision of Nonfarm Payrolls (NFP) by the Bureau of Labor Statistics (BLS) on Tuesday, September 9 at 14:00 GMT.
New
2025.09.09 00:30EUR/USD edges higher as US Dollar weakens, France confidence vote looms
The Euro (EUR) edges higher against the US Dollar (USD) on Monday, with EUR/USD hovering near its strongest level since late July.
New
2025.09.09 00:06Disclaimer:
All information and content provided on this website is provided for informational purposes only and is not intended to solicit any investment. Although all efforts are made in order to ensure that the information is correct, no guarantee is provided for the accuracy of any content on this website. Any decision made shall be the responsibility of the investor and Myforex does not take any responsibility whatsoever regarding the use of any information provided herein.
The content provided on this website belongs to Myforex and, where stated, the relevant licensors. All rights are reserved by Myforex and the relevant licensors, and no content of this website, whether in full or in part, shall be copied or displayed elsewhere without the explicit written permission of the relevant copyright holder. If you wish to use any part of the content provided on this website, please ensure that you contact Myforex.
Myforex uses cookies to improve the convenience and functionality of this website. This website may include cookies not only by us but also by third parties (advertisers, log analysts, etc.) for the purpose of tracking the activities of users. Cookie policy
