Euro rebounds from 7-month minimum after PMIs blast hopes
On Monday, the greenback lost grip of a seven-month peak against the common currency after fresh data revealed economic growth in the currency union turns to be the strongest for all year, thus boosting chatter the ECB could taper its easing program.
The currency pair EUR/USD grew 0.1286%, trading at $1.0890, rising from as low as $1.0859 earlier in the day. The common currency dropped to $1.0859 — a seven-month minimum against the greenback— on Friday as market participants kept betting on higher American short-term rates later this year.
During European morning trade, the latest purchasing managers indexes for the region demonstrated activity in both the services as well as manufacturing sectors and turned to be stronger than expected in October. The flash composite reading for the eurozone edged up to a 10-month peak of 53.7, powered by a steep ascend in Germany. The manufacturing index leapt to a 30-month peak at 53.3.