EUR/USD edges higher as Eurozone PMI beats expectations at 50.2

EUR/USD gained 0.15% to 1.0865 as Eurozone composite PMI data surprised to the upside, printing at 50.2 versus 49.5 preliminary estimates. The services PMI was revised higher to 49.7 from 48.9, though still below the expansion threshold of 50. While the data suggests marginal economic growth rather than contraction, underlying fundamentals remain weak with German demand particularly subdued. The euro found support as markets had positioned for worse readings, though gains remain limited given the economy is essentially stalling. Business confidence continues to lag amid ongoing uncertainty about ECB policy direction and regional growth prospects. Technical resistance sits at 1.0890, with support at 1.0840. Traders should monitor upcoming ECB communications for policy hints, as the central bank balances persistent inflation concerns against weakening growth momentum.