German PMIs jump – EUR/USD rises in range

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Businesses see stronger growth in October according to Markit’s purchasing managers’ indices. This applies to both the manufacturing and in the services sectors. Manufacturing rose from 54.3 to 55.1 points. It was expected to remain unchanged. Services made a bigger jump from 50.9 to 54.1. Expectations stood on a more modest rise to 51.5 points.

EUR/USD remains in range, which is the new, lower range: 1.0860 to 1.09, although it is moving up within the this limited space. The USD strength + Draghi’s open door to more QE weighed on the pair last week.

French  PMIs released earlier were mixed: the manufacturing sector saw another advance, to 51.3 points, better than 50.2 expected. However, services slipped to 52.1, well below 54.1 predicted. We will later get the all-European data. Later on, two FOMC members will dominate the scene: Dudley and Bullard. Recent talk from the US central bank has been hawkish.

Here is how it looks on the 30-minute chart. Further support awaits at 1.0820, followed by 1.0710. Resistance is at 1.0960.

eurusd-october-24-2016

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