EUR/USD Pressured by Weak China PMI and Eurozone Inflation Concerns

EUR/USD declined 0.3% (30 pips) to 1.0540 as disappointing Chinese economic data and anticipation of Eurozone CPI weighed on risk sentiment. China's Manufacturing PMI fell to 49.2 in October, missing expectations of 49.5 and signaling continued contraction in the world's second-largest economy. The weak data dampened demand for risk-sensitive currencies including the euro. Markets await Eurozone October CPI data, expected to show inflation rising to 2.1% from 1.7%, potentially complicating the ECB's dovish stance. US equity futures point lower, with S&P 500 futures down 0.4% and Nasdaq futures falling 0.5%, reflecting broader risk-off sentiment. Technical analysis shows EUR/USD breaking below the 50-day moving average at 1.0560, with next support at 1.0500. A disappointing Eurozone inflation print could accelerate euro weakness, while stronger data might provide temporary relief for the common currency.