FX.co ★ Euro Holds Above $1.16 After Strong PMI Data and Soft US Inflation

The euro maintained its position above $1.16 as the week concluded, marked by positive Eurozone PMI outcomes and US inflation figures that fell short of expectations. The Eurozone's private sector experienced its most rapid growth since May 2024 in October, bolstered by strong activity in the services sector and a stabilization in manufacturing. Germany achieved a 29-month high in growth, with the rest of the region also displaying solid expansion, while France endured its 14th consecutive month of decline. In the United States, headline inflation climbed to 3.0% in September, the highest rate since January, yet still below projections. Meanwhile, core inflation decreased slightly to 3.0% from 3.1%, indicating that price pressures remain contained despite the ongoing trade tensions under the Trump administration. Consequently, traders have increased their expectations for two additional Federal Reserve rate cuts this year, with a potential for another in January; in contrast, the European Central Bank is anticipated to postpone any easing measures until July 2026.