Euro Spikes Post as Euro Zone CPI Beats Forecast

Euro after declining towards 1.0900 managed to find buyers against the US Dollar.

Euro Zone CPI released by the Eurostat posted an increase of 0.2% in July 2015, just as the market expected.

Euro Zone Core CPI was above the forecast with a rise of 0.9%.

Euro Zone Unemployment Rate released by the Eurostat remained stable at 11.1% in July 2015.

Euro Zone CPI

Earlier during the London session, the Euro Zone CPI, which captures the changes in the price of goods and services was released by the Eurostat. The market was expecting an increase of 0.2% in July 2015, compared with the same month a year ago. The outcome was in line with the forecast as the Euro Zone CPI rose by 0.2%.

There was one positive reading to note, as the Euro Zone Core CPI posted a gain of 0.9% in July 2015, compared with July 2014. It was on the higher side, as the forecast was of +0.8%. The report stated that the “lowest annual rates were registered in Cyprus (-2.1%), Greece (-1.1%), Romania and Slovenia (both -0.9%). The highest annual rates were recorded in Malta (1.1%), Austria (1.0%), Belgium and the Czech Republic (both 0.9%)”.

Italian Unemployment Rate

There was one more release lined up in the Euro Zone, as the Italian Unemployment Rate was published by the National Institute of Statistics. The outcome was disappointing, as the Unemployment Rate surged to 12.7% from the previous revised reading of 12.5%. However, the report failed to push the EURUSD pair lower during the London session.

EURUSD Technical Analysis
The Euro earlier traded lower to test 1.0900 support area versus the US dollar where it found bids for a correction. Once the Euro Zone CPI report was released, the shared currency spiked higher to gain more than 20 pips. It looks like the EURUSD pair might make one more attempt for a push higher.
On the downside, the most important support area building is around 1.0930-20.