Euro Tumbles on Strong Eurozone Survey Despite Cautious Investors

The Eurozone's flash Purchasing Managers Index (PMI) composite reading came in at 53.1, beating forecasts of 51.5, with services at 53 against 51.7. The strong European numbers lifted the EUR/USD to a trading level just under 1.1400, but its fall on the day may indicate that investors are still cautious about the Euro's future.

The ECB has already raised its deposit rate to 2.50% this year, and five more increases would only bring it up to where the Fed's rate starts. Traders have added to bets on another Fed increase on October 28, and a strong US survey may further fuel these expectations.

ECB Executive Board member Schnabel speaks on Thursday at 07:15 GMT, and ECB Chief Economist Lane at 09:00 GMT, both with a strong survey to point to if they want to argue for another hike. The ECB's next decision is on October 29, one day after the Fed's.