Euro Advances After Strong Eurozone PMI Data
The euro firmed against its most major rivals in the European
session on Monday, as strong manufacturing data from Eurozone
triggered hopes of an economic rebound from the coronavirus
Final survey results from IHS Markit showed that the euro area
manufacturing sector gained further strength in October driven by
acceleration in production and new orders.
The manufacturing Purchasing Managers' Index rose to 54.8 in
October from 53.7 in September. The flash score was 54.4. A reading
above 50 indicates expansion in the sector.
Sentiment was further underpinned by better-than-expected China
The manufacturing sector in China continued to expand in
October, and at a faster rate, the latest survey from Caixin
revealed with a manufacturing PMI score of 53.6, up from 53.0 in
The euro rose to 122.15 against the yen and 1.0689 against the
franc, from its early low of 121.70 and a 3-1/2-month low of
1.0667, respectively. The currency may possibly challenge
resistance around 124.00 against the yen and 1.10 against the
After falling to a 5-week low of 1.1622 at 3:30 am ET, the euro
bounced off to 1.1651 against the greenback. The euro is poised to
locate resistance around the 1.20 level.
In contrast, the euro eased off from an early high of 0.9049
against the pound, with the pair trading at 0.9017. Should the euro
slides further, 0.88 is possibly seen as its next support
Final survey results from IHS Markit showed that the UK
manufacturing sector continued to expand in October but the upturn
showed signs of losing impetus as the initial boost to growth from
the economy reopening faded and job losses accelerated.
The IHS Markit/Chartered Institute of Procurement & Supply
factory Purchasing Managers' Index fell to 53.7 in October from
54.1 in the previous month. The flash score was 53.3. A score above
50 indicates expansion.
The euro pulled back to 1.6550 against the aussie and 1.7568
versus the kiwi, from its early highs of 1.6641 and 1.7663,
respectively. The euro is seen finding support around 1.60 against
the aussie and 1.70 versus the kiwi.
The EUR/CAD pair hit 1.5486, setting a 2-week low. The next
possible support for the currency is seen around the 1.52
Looking ahead, U.S. ISM manufacturing PMI for October and
construction spending for September are set for release in the New