Euro pares gains following German data setback after French data helped raise hopes of a potential economic reprieve
- France October flash manufacturing PMI 50.5 vs 50.2 expected
- Germany October flash manufacturing PMI 41.9 vs 42.0 expected
- Eurozone October flash manufacturing PMI 45.7 vs 46.0 expected
EUR/USD is back down to 1.1130 now after hitting a high of 1.1163 earlier and risk trades are also giving back gains on the day with equities and bond yields moving back lower.
The French release helped to give buyers hope of an economic rebound in the region for Q3 but the German figures knocked down the optimism before the Eurozone figures reaffirmed that the economy is still going nowhere in Q3.
Notably, the services print for Germany hit a fresh three-year low while the composite print in the Eurozone stagnated once again with services business expectations falling to its weakest level since June 2013.
As the euro pares its earlier gains, risk assets also see a quick reversal as depicted by Treasury yields below:
