FX.co ★ Euro Holds Near $1.16 as Eurozone PMI Surges Ahead of US Inflation

The euro was steady around $1.16 as investors processed the preliminary Eurozone PMI data and anticipated the delayed release of US inflation figures expected later on Friday. The October PMI indicated the private sector was growing at its quickest rate since May 2024, propelled by strong services activity and a stabilizing manufacturing sector. Germany achieved a 29-month peak in growth, while the broader euro area saw rapid expansion. However, France recorded its 14th consecutive month of decline. In the US, inflation is forecasted to rise for the second consecutive month, preceding the Federal Reserve's meeting next week, where there is a strong market expectation of a 25 basis points rate cut. Investors also reacted positively to the news that US President Donald Trump is set to meet with Chinese President Xi Jinping next week, amid ongoing trade tensions and an impending deadline for additional 100% US tariffs on Chinese goods.