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Euro Higher After Eurozone PMI Data; Sentix Investor Sentiment Index

The euro spiked up against its major counterparts in the European session on Monday, as the euro area manufacturing sector shrank slightly less than initially estimated in October and Sentix investor confidence rebounded strongly in November to its highest level since June.

Final data from IHS Markit showed that the factory Purchasing Managers' Index rose to 45.9 from 45.7 in September. According to flash estimate, the indicator held steady at 45.7 in October.

German manufacturing PMI came in at 42.1 versus 41.7 in September. The flash score was 41.9.

Survey data from the behavioral research institute Sentix showed that euro area investor confidence rebounded strongly in November to its best level in five months as expectations were the highest since May.

The investor confidence index for Eurozone climbed to -4.5 from -16.8 in October, the think tank said. Economists had forecast a score of -13.8.

Investors welcomed developments on the US-China trade front after U.S. Commerce Secretary Wilbur Ross expressed optimism about reaching "phase one" trade deal with China this month.

The euro showed mixed trading against its major counterparts in the previous session. While it rose against the yen and the franc, it was steady against the greenback and the pound.

The euro staged a modest rebound to 1.1169 against the greenback and held steady thereafter. This may be compared to a 4-day high of 1.1176 seen at 2:15 am ET. The euro is seen finding resistance around the 1.13 level.

The euro climbed to a 4-day high of 0.8646 against the pound, after falling to 0.8621 at 3:30 am ET. On the upside, 0.88 is likely seen as its next resistance level.

Survey data from IHS Markit showed that the UK construction sector continued to contract in October.

The IHS Markit/Chartered Institute of Procurement & Supply construction Purchasing Managers' Index rose to 44.2 in October from 43.3 in September.

The European currency appreciated to 121.08 against the yen, setting a 4-day high. This followed a decline to 120.77 at 7:45 pm ET. The euro may test resistance around the 123.00 region, if it gains again.

The euro strengthened to a 4-day high of 1.1034 against the franc, following a decline to 1.1000 at 5:15 pm ET. Next immediate resistance for the euro is seen around the 1.13 level.

The euro bounced off to 1.7351 against the kiwi, 1.6161 against the aussie and 1.4687 against the loonie, from its early near a 2-month low of 1.7275, 4-day lows of 1.6122 and 1.4656, respectively. The next possible resistance for the euro is seen around 1.75 against the kiwi, 1.63 against the aussie and 1.49 against the loonie.

Looking ahead, U.S. durable goods orders and factory orders for September are scheduled for release in the New York session.

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