EUR/USD: to pick up ground in the medium term? - Scotiabank

Analysts at Scotiabank explained that EUR/USD is modestly firmer. 

Key Quotes:

"Final Eurozone manufacturing PMI data for Oct at 56.5 (middle chart) was a tenth below the initial estimate. Slightly stronger, final German data and robust reports from some of the southern Eurozone economies could not offset a sizeable revision lower in the final French data."

"While the ECB remains in easing mode and interest rate differentials remain adverse, we think the EUR can still pick up some additional ground against the USD in the medium term as investors embrace the strengthening growth momentum in the region and rebuild exposure to EUR-denominated assets as local political risks diminish."