On Tuesday (Oct 25), / fell, temporarily trading at 0.9856, down 0.15%.
Eurozone PMI data for October highlighted a decline in business activity as inflation and economic uncertainty weighed on sentiment.
The disappointing data strengthen the case for aggressive interest rate rises in Europe, which will maintain upward pressure on short-term eurozone bond yields.
The data reinforced expectations that the eurozone is heading for recession.
Economic activity contracted for a fourth straight month, with manufacturing falling the most.
Moreover, business activity in Germany, the eurozone’s largest economy, began to slow in the fourth quarter.
The European Central Bank is expected to raise interest rates a second time on Thursday by 75 basis points.
However, uncertainty over the economic outlook could see the doves rise again.
Eur/USD bulls edged closer to 0.9900 on weak and hawkish ECB hopes.
