EUR/USD Holds 1.1100 as Euro PMIs Beat but Lack Breakout Momentum

EUR/USD traded sideways near 1.1100 Monday despite Euro area PMI data exceeding expectations, as the improvements proved insufficient to spark a decisive breakout. The Eurozone Composite PMI rose to 49.6 from 48.9, beating forecasts of 49.1, while Manufacturing PMI improved to 45.2 versus 45.0 expected. Despite the positive surprise, readings below 50 still indicate economic contraction, limiting euro upside potential. The pair gained a modest 0.1% (11 pips) to 1.1105 but remained capped by resistance at 1.1120. EUR/GBP edged lower to 0.8480 as sterling showed relative strength. Technical indicators suggest consolidation continues, with the 50-day moving average at 1.1090 providing near-term support. Traders await Tuesday's German IFO business climate data and Fed commentary for clearer directional signals, with the euro requiring more substantial economic improvements to sustain moves above 1.1150.