EUR/USD gained on narrowing spreads over 10Y bunds to the lowest (248bps) since early Aug - Scotiabank

Analysts at Scotiabank explained the recent fundamentals for the euro from the European session.

Key Quotes:

"Final Eurozone PMI data for Aug left the Composite reading a tenth higher at 54.5 versus the preliminary reading. German and French data were nudged a little lower from initially reported levels and Italian PMI data was softer than expected."

"But Spain surprised with solid advances in both the Manufacturing and Composite data points. Meanwhile, Italian government officials continue to suggest that budget discussions will be aimed at keeping spending with EU limits, providing a lift for BTPS and narrowing spreads over 10Y bunds to the lowest (248bps) since early Aug."