EUR/USD gains as French PMI beats expectations, services sector expands

EUR/USD advanced 0.25% to 1.0580 following better-than-expected French PMI data, with services activity returning to expansion territory. The French Services PMI jumped to 50.8 in November from 48.0, significantly exceeding forecasts of 48.4 and moving above the crucial 50-mark that separates expansion from contraction. Manufacturing PMI came in at 47.8, missing expectations of 49.0 but showing improvement from 48.8. The composite PMI reached 49.9, just shy of the expansion threshold but well above the projected 48.1. This data suggests stabilization in France's economy after October's political turmoil-induced decline. The euro found support as markets interpreted the data as reducing pressure on the ECB to implement aggressive rate cuts. Technical resistance for EUR/USD sits at 1.0600, with support established at 1.0550. Traders await German PMI data later today for further direction on euro strength.