24.10.201308:45:00UTC+00Euro Mixed After Euro-zone PMI

Thursday, the euro showed mixed reaction to easing private sector growth in the euro-zone in the month of October after registering a 27-month high in September.

An indicator of private sector performance for the euro area signaled expansion for the fourth straight month in October, but declined unexpectedly from a 27-month high, survey results showed today.

Due to a slowdown in services, the flash composite Purchasing Managers' Index fell unexpectedly to 51.5 from 52.2 in September, Markit Economics said. The reading was expected to rise to 52.4.

The services PMI slid to 50.9 in October from 52.2, while it was forecast to remain unchanged at the September level.

On the other hand, manufacturing activity growth improved slightly in October, with the index rising to 51.3 from 51.1 in September. It was expected to climb to 51.4.

Germany's flash composite output index dropped to a three-month low of 52.6 from 53.2 in September. The flash services activity index also fell to a three-month low of 52.3 from 53.7 in September.

The flash purchasing managers' index for the manufacturing sector, meanwhile, rose to a two-month high of 51.5 from 51.1 in the previous month. Economists were looking for a figure of 51.4.

The French flash composite output index came in at 50.1 in October, close to the neutral 50-mark. It dropped from a score of 50.5 seen in September.

The manufacturing sector remained in negative territory with the Purchasing Managers' Index falling to 49.4 from 49.8 in September. The reading was forecast to rise to 50.1.

Likewise, the services PMI decreased unexpectedly to 50.2 from 51 in September, but the sector continued to register expansion.

Equities climbed today following the latest survey results from HSBC and Markit Economics revealed that China's manufacturing PMI rose to a seven-month high of 50.9 in October, from the 50.2 reading in September. That topped forecasts for a score of 50.4.

The euro found its footing above 0.85 level against the struggling sterling, rising as high as 0.8541 around 6:00 am ET, its highest level since August 30. Next key levels to watch for the euro-pound pair are at 0.8590/0.86, 0.8650, 0.8730 and finally its trend-line resistance of a horizontal channel at 0.8760.

The euro showed some consolidation against the dollar after having successfully broken the 1.38 level in the late Asian session and a subsequent retreat to the 1.3765 area immediately after the PMI data.

The common currency recovered some of its lost ground against the greenback to hit as high as 1.3816 around 6:15 am ET and a further break in the range could help the pair re-visit the key 1.40 level after a gap of nearly 2-years.

The single currency stuck in ranges against the Swiss franc and the yen in most of today's deals. The euro-yen pair traded in a range of 133.90-134.80 and the euro-franc pair was swinging back and forth in a 30-pips range, trading between a low of 1.2285 and a high at 1.2313.