ForexLive European FX news wrap: Euro drops on PMI woes

<p>Headlines:</p><ul><li><a href="https://www.forexlive.com/news/flailing-german-economy-fails-to-breath-confidence-in-the-euro-20231024/">Flailing German economy fails to breath confidence in the euro</a></li><li><a href="https://www.forexlive.com/news/france-october-flash-services-pmi-461-vs-446-expected-20231024/">France October flash services PMI 46.1 vs 44.6 expected</a></li><li><a href="https://www.forexlive.com/news/germany-october-flash-manufacturing-pmi-407-vs-400-expected-20231024/">Germany October flash manufacturing PMI 40.7 vs 40.0 expected</a></li><li><a href="https://www.forexlive.com/news/eurozone-october-flash-services-pmi-478-vs-487-expected-20231024/">Eurozone October flash services PMI 47.8 vs 48.7 expected</a></li><li><a href="https://www.forexlive.com/news/germany-november-gfk-consumer-sentiment-281-vs-266-expected-20231024/">Germany November GfK consumer sentiment -28.1 vs -26.6 expected</a></li><li><a href="https://www.forexlive.com/news/uk-october-flash-services-pmi-492-vs-493-expected-20231024/">UK October flash services PMI 49.2 vs 49.3 expected</a></li><li><a href="https://www.forexlive.com/news/uk-august-ilo-unemployment-rate-42-vs-43-expected-20231024/">UK August ILO unemployment rate 4.2% vs 4.3% expected</a></li><li><a href="https://www.forexlive.com/centralbank/ecbs-lagarde-to-eu-officials-inflation-fight-is-going-well-20231024/">ECB's Lagarde to EU officials: Inflation fight is going well</a></li><li><a href="https://www.forexlive.com/centralbank/ecbs-makhlouf-far-too-early-to-tell-consequences-of-middle-east-situation-20231024/">ECB's Makhlouf: Far too early to tell consequences of Middle East situation</a></li><li><a href="https://www.forexlive.com/centralbank/rbas-bullock-australian-dollar-relatively-stable-not-a-concern-for-policy-20231024/">RBA's Bullock: Australian dollar relatively stable, not a concern for policy</a></li><li><a href="https://www.forexlive.com/news/we-are-going-to-see-higher-interest-rates-for-longer-larry-fink-20231024/">We are going to see higher interest rates for longer – Larry Fink</a></li><li><a href="https://www.forexlive.com/news/loan-demand-by-firms-and-households-continue-to-decline-sharply-ecb-survey-20231024/">Loan demand by firms and households continue to decline sharply – ECB survey</a></li></ul><p>Markets:</p><ul><li>AUD leads, EUR lags on the day</li><li>European equities higher; S&amp;P 500 futures up 0.5%</li><li>US 10-year yields up 2.3 bps to 4.861%</li><li>Gold down 0.6% to $1,961.07</li><li>WTI crude up 0.3% to $84.75</li><li>Bitcoin up 4.1% to $34,458</li></ul><p>Falling yields were the highlight yesterday and it threatened to be that way early on today as well. 10-year Treasury yields dipped to a low of 4.80% before recovering to around 4.86% currently and that took the dollar along with it for the ride.</p><p>Instead, the euro was the highlight as it slumped during the session after a weak set of PMI readings from France and Germany in particular. EUR/USD held around 1.0690 early in the session before reversing to hit a low of 1.0623 and is holding just above that on the day.</p><p>The single currency remains the weakest performer while risk trades are keeping the turnaround from yesterday and pushing higher today. S&amp;P 500 futures are up 0.5% while European indices are holding modest gains so far on the day.</p><p>That is helping to keep the aussie underpinned, with AUD/USD up 0.5% to 0.6365. Besides that, other major currencies remain more muted although we did see GBP/USD fall off as well from a high of 1.2280 to 1.2210 on the session after is own PMI data and dollar recovery.</p><p>In other markets, gold is seen tracking lower and looks poised for back-to-back daily losses for the first time in three weeks. Perhaps there is some further unwinding of safety flows at play there. Meanwhile, Bitcoin continues to surge with over 4% gains now to $34,458 after briefly clipping the $35,000 mark earlier in the day.</p>

This article was written by Justin Low at www.forexlive.com.