EUR flows: EUR edges up after better French data

The French INSEE survey has shown a strong improvement in manufacturing in October, although the general business situation remains relatively weak. There has been a slight EUR recovery in reaction to the data, and the better manufacturing tone should be seen as mildly supportive given the recent wobbles due to concerns about the French fiscal and political situation. However, the data looks a little out of line with other surveys, and with services and the total business situation still in the doldrums, an extended reaction should not be expected.