When is the Eurozone Prelim HICP inflation and how could it affect EUR/USD?

The Eurozone Prelim HICP Overview

The Eurostat will publish the preliminary Eurozone Harmonized Index of Consumer Prices (HICP) data for September later on Wednesday at 09:00 GMT.

Eurozone HICP inflation is expected to rise to 2.2% year-over-year (YoY) in September, from 2.0% in August. Meanwhile, the annual core inflation is anticipated to remain consistent at 2.3% in the reported month.

The monthly Eurozone inflation and core inflation were at 0.1% and 0.3%, respectively, in August.

How could the Eurozone Prelim HICP affect EUR/USD?

The EUR/USD pair may receive support if Eurozone HICP data comes stronger-than-expected. The inflation and core inflation are both expected to come above the European Central Bank's (ECB) target of 2.0% YoY.

The EUR/USD pair also appreciates as the US Dollar (USD) faces challenges after the latest US jobs data increased the odds of Federal Reserve (Fed) rate cuts. Traders are likely to await September's US ADP Employment Change and ISM Manufacturing PMI data later in the day, though their release could be disrupted by the government shutdown.

The Euro (EUR) advanced against its peers after preliminary German Consumer Price Index (CPI) data was released on Tuesday. The German Harmonized Index of Consumer Prices, the European Central Bank's (ECB) preferred gauge of inflation, rose 0.2% month-over-month, lifting the annual rate to 2.4% from 2.1%.

Technically, the EUR/USD pair surges to near 1.1780 at the time of writing, extending its winning streak for the fourth successive session. The market bias has turned bullish as the 14-day Relative Strength Index (RSI) moves above the 50 level.

The EUR/USD pair could explore the region around 1.1918, the highest since June 2021, which was recorded on September 17. On the downside, the initial support lies at the nine-day EMA of 1.1743, followed by the 50-day EMA of 1.1688. Further declines would prompt the EUR/USD pair to test the two-month low of 1.1608.