Euro Moves Higher Despite Weak German and Eurozone Manufacturing PMIs
Euro continues to strengthen versus US dollar. Today, the euro/dollar pair added another 0.29% to trade at 1.1441 level. Meanwhile, hopes that the UK and EU might strike a deal also supported the EUR/USD pair. Overall in October, the single currency has lost 2.5% amid strong dollar, which rose to a 16-month high against a basket of major currencies.
Today's data showed, that German and Eurozone manufacturing PMIs softened in October, but were within expectations. The German manufacturing sector slowed for a third straight month in October, with Manufacturing PMI at 52.2, down from 53.7 points in September. The reading is the lowest since May 2016.
The Eurozone Manufacturing PMI fell to a 26-month low of 52.0 in October from 53.2 in September. Economists had forecast a weaker fall of the rate to 52.1. Despite the decline, the index remains above the value of 50, which separates the expansion from the reduction.