The euro hovered around $1.16 as investors digested flash Eurozone PMI data and awaited delayed US inflation figures due later Friday. The October PMI showed the private sector growing at its fastest pace since May 2024, driven by robust services activity and stabilizing manufacturing. Germany hit a 29-month growth high, the rest of the euro area expanded rapidly, while France posted its 14th consecutive monthly decline. In the US, inflation is expected to accelerate for a second month, ahead of the Federal Reserve’s meeting next week, where markets almost fully price in a 25bps rate cut. Investors also welcomed news that US President Donald Trump will meet Chinese President Xi Jinping next week, amid trade tensions and a looming deadline for additional 100% US tariffs on Chinese goods.
