EUR/USD flows - Notable PMI upside, even as break follows through
EUR/USD follows through on the support break
Very notable upside on the EZ PMI worth noting however
Some notable recoveries in the flash Sep PMIs, seeing the EZ composite index up to 53.1 from 52.0, the highest since Apr23, and well above market (51.7), with new orders at 4-year highs.
Data could be noise but also potentially quite significant in terms of feeding into a view that activity – not just in the US but also EZ – is not only holding up but actually showing some positive dynamics in the face of the backdrop.
No positive reaction from EUR/USD - indeed, the dollar remains on the front foot and the EUR/USD support break at 1.1450 still following through this morning, now at next key support at 1.1410/00. Nonetheless, one to monitor given how action is being driven at present by spread leadership. Data holding up the oil driven dip in bund yields this morning, DE 2yr up 4bp from the day lows.