Euro Area Construction Output
Earlier during the London session, the Euro Area, which represents the output of the construction industry, in both the private and public sectors was released by the Eurostat. The outcome was in line with the forecast, as there was an increase of 0.3% in May 2015, which was similar to the last reading. The report stated that the major increases were from Slovakia (+3.8%), the Netherlands (+2.7%) and France (+1.0%). On the other hand, the negative contributors were from Slovenia (-6.2%), Poland (-4.8%), Bulgaria (-3.3%) and Hungary (-3.1%).
There was no major reaction from the Euro, as the shared currency continued to trade in a range against the US Dollar.
US CPI
Later today, there are many economic releases lined up in the US. The most important one is the Consumer Price Index (CPI), which is a measure of price movements by the comparison between the retail prices of a representative shopping basket of goods and services. It will be released by the US Bureau of Labor Statistics. The forecast is slated for an increase of 0.1% in June 2015, compared with the same month a year ago.
EURUSD Technical Analysis
The Euro declined recently to trade near 1.0880 against the US dollar. The mentioned level represents a major support area, as sellers struggled many times earlier to break it. So, a positive reaction is likely moving ahead.
Alternatively, if there is a break below 1.0880-60, then more downsides are possible in the short term.
Yours,
Vlad
