EUR/USD rises as Eurozone PMI beats expectations, ECB holds steady

EUR/USD gained 0.25% to 1.0875 following stronger-than-expected Eurozone PMI data that reinforced the ECB's decision to maintain current policy rates. October's flash Services PMI jumped to 52.6 from 51.3, significantly exceeding the 51.1 forecast, while Manufacturing PMI held steady at 50.0 versus 49.8 expected. The Composite PMI climbed to 52.2, well above the anticipated 51.0, driven primarily by German economic outperformance. The robust services sector expansion and resilient employment conditions support the ECB's pause stance, though moderating inflation pressures remain insufficient to trigger policy easing. Technical indicators show EUR/USD testing resistance at 1.0900, with momentum building on the PMI beat. Support lies at 1.0830 (previous session low). Traders should monitor upcoming ECB communications for any shifts in policy guidance, as sustained economic resilience could delay future rate cuts and provide additional euro support.