Euro/Dollar fins some support but market moves were marginal

PMIs from France were weaker than expected, slipping further in to contractionary territory in October, said analysts at Lloyds Bank.

However, the German numbers were surprisingly strong with the manufacturing index rebounding firmly after falling below 50 in September. "This helped provide some support for EUR/USD; however, market moves were marginal", they said.

There is little on the calendar today that looks likely to trigger much market reaction. With Eurozone aggregate PMIs coming in firmer than expected, this should somewhat temper market concerns about weaker Eurozone growth. However, Lloyds Bank experts believe that "with EUR still being viewed as a funding currency, a continuation of improving risk sentiment will likely weigh on EUR/USD."

"Furthermore, the market will likely have an eye on Sunday’s release of the AQR and stress tests results. Uncertainty surrounding the results and the likely market reaction will limit attraction towards EUR."