German flash Manufacturing PMI jumps to 58 in October vs. an expected dip to 55.1

German Manufacturing PMI arrives at 58.0 in October vs. 55.1 expected.
Services PMI in Germany fell to 48.9 in October vs. 49.2 anticipated.

According to the preliminary manufacturing activity report from IHS/Markit research, released this Friday, a further rise in the German manufacturing output helped to support growth across the private sector in October. In fact, the flash version of the German Manufacturing PMI unexpectedly jumped to a 30-month high level of 58.0, surpassing even the most optimistic estimates.

Meanwhile, the gauge for the services sector fell into contraction territory and came in at a four-month low level of 48.9 as compared to consensus estimates pointing to a drop to 49.2

FX implications

Upbeat manufacturing PMI provided a modest lift to the shared currency and pushed the EUR/USD pair back closer to daily tops, around the 1.1820 region. However, dismal Services PMI might hold bulls from placing aggressive bets and keep a lid on any additional gains.

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