German flash Manufacturing PMI jumps to 58 in October vs. an expected dip to 55.1

• German Manufacturing PMI arrives at 58.0 in October vs. 55.1 expected.
• Services PMI in Germany fell to 48.9 in October vs. 49.2 anticipated.

According to the preliminary manufacturing activity report from IHS/Markit research, released this Friday, a further rise in the German manufacturing output helped to support growth across the private sector in October. In fact, the flash version of the German Manufacturing PMI unexpectedly jumped to a 30-month high level of 58.0, surpassing even the most optimistic estimates.

Meanwhile, the gauge for the services sector fell into contraction territory and came in at a four-month low level of 48.9 as compared to consensus estimates pointing to a drop to 49.2

FX implications

Upbeat manufacturing PMI provided a modest lift to the shared currency and pushed the EUR/USD pair back closer to daily tops, around the 1.1820 region. However, dismal Services PMI might hold bulls from placing aggressive bets and keep a lid on any additional gains.