Investing.com - The euro rose to session highs against the dollar and the yen on Thursday after data showed that the euro zone saw a marginal uptick in business activity in October.
EUR/USD edged up 0.09% to 1.2658 from around 1.2641 ahead of the report.
The euro found support after data showed that manufacturing output expanded at the fastest rate in three months, while growth of service sector activity was unchanged from September.
Research group Markit said its preliminary manufacturing purchasing managers’ index ticked up to 50.7 this month from a final reading of 50.3 in September. Analysts had expected the index to slide to 49.9.
The services PMI held steady at 52.4, slightly above expectations of 52.0.
“The survey data are broadly consistent with GDP rising 0.25% in the third quarter, but unless demand picks up soon, growth could weaken again in the fourth quarter and deflationary forces could intensify," Chris Williamson, chief economist at Markit said.
Manufacturing activity in Germany increased this month, with the manufacturing PMI rising to 51.8 from a final reading of 49.9 in September. Economists had expected the index to tick down to 49.5.
Activity in the German service sector ticked lower, with the services PMI sliding to 54.7 from 55.7 last month.
Business activity on France declined to an eight month low as the manufacturing sector contracted at a faster than expected rate and service sector output shrank.
Earlier Thursday, data showed that China’s HSBC manufacturing PMI edged up to 50.4 this month from 50.2 last month, only just above forecasts for 50.3.
However the report also showed that factory output fell to a five month low this month, adding to concerns over slowing global growth.
Fears that a slowdown in global growth could act as a drag on the U.S. economy have prompted investors to reassess expectations on how soon the Federal Reserve will raise interest rates after its stimulus program winds up later this month.
The dollar remained supported after data on Wednesday showed that the U.S. consumer price index ticked up 0.1% last month from August, while core consumer prices, which exclude energy and food costs, also rose 0.1%.
The data eased concerns that U.S. consumer prices are stagnating.
Elsewhere, the euro rose to session highs against the yen, with EUR/JPY advancing 0.45% to 136.13, up from 135.54 ahead of the data.