Eurozone: PMI unable to do more than steady the euro in its seven-month trough - BBH

Research Team at BBH, suggests that yesterday's stronger than expected flash Eurozone PMI was unable to do more than steady the euro in its seven-month trough. 

Key Quotes

“Today's recovery in the German IFO survey barely elicited a reaction from the single currency.  It has been confined to less than a third of a cent within yesterday's ranges.  Some buying has emerged in the $1.0870 area for three sessions now.  However, lower highs are being recorded, and the euro has been unable to resurface above $1.09 since the European session last Friday. 

The IFO business climate (current assessment and expectations) improved more than expected (110.5 vs. 109.5 in Sept) and is at its highest level in 2.5 years.  The Bundesbank warned that the slowdown in Q3 was temporary.  The recent data lends support to this optimism.”