EUR/USD gains as Spain PMI surge signals robust Eurozone recovery

EUR/USD has strengthened to 1.0925, gaining 0.4% (45 pips) following Spain's impressive October Services PMI reading of 56.6, significantly beating expectations of 54.8. The data marks Spain's fastest services sector growth in 10 months, with the Composite PMI jumping to 56.0 from 53.8, indicating accelerating economic expansion across both manufacturing and services. The robust figures suggest broader Eurozone economic resilience, potentially supporting the European Central Bank's current monetary stance. Business confidence reached a seven-month high, though elevated input costs remain a concern for policymakers. Technical indicators show EUR/USD breaking above the 1.0900 resistance level, with momentum targeting 1.0950 as the next key level. Support has formed at 1.0885, coinciding with the daily pivot point. Traders are positioning for potential euro strength ahead of Thursday's ECB rate decision, where officials may acknowledge improving economic conditions while maintaining their cautious approach to policy normalization.