EUR/USD dips as Italy industrial output contracts 0.9% vs +0.2% forecast

EUR/USD traded marginally lower at 1.0845, declining 0.1% (10 pips) following disappointing Italian industrial production data. Italy's industrial output contracted 0.9% year-over-year in the latest reading, significantly worse than the +0.2% growth economists had forecast and reversing the previous month's +0.1% gain. The month-over-month figure also disappointed, falling 0.7% against expectations of flat growth at 0.0%, down from the prior +0.9% expansion. While Italian industrial production is typically a volatile indicator with limited immediate market impact, the weak data adds to concerns about Eurozone economic momentum. The euro remains under pressure as traders await more significant economic releases later this week. Technical resistance for EUR/USD sits at 1.0880, while support emerges at 1.0820. The broader trend will likely depend on upcoming ECB policy signals and US economic data releases.