The Euro strengthened against the US dollar but that does not correctly reflect the outlook for the Eurozone economy.
French and Italian industrial production both dropped significantly in the month of May which is consistent with the decline that has already been reported in Germany and Spain. Based upon these numbers, GDP should have remained unchanged in the second quarter, which compares to the 0.7 percent growth reported in Q1. The Eurozone economy is undoubtedly struggling and the catalyst that will break the EUR/USD out of its current range is evidence that one economy (the US or the Eurozone) is deteriorating much faster than the other. This could very well be the Eurozone, which is only beginning to suffer. There will be no Eurozone economic data due for release tomorrow, which means that the price action of the currency pair will depend upon US data and the fluctuations in the Dow.