European session review: EUR mixed, as investors weigh mixed Eurozone's PMI data and growing coronavirus cases in the region

EUR traded mixed against other major currencies in the European session on Friday as investors weighed mixed PMI data out of the euro area and growing coronavirus cases in the region.

IHS Markit reported its flash Eurozone Manufacturing PMI came in at  54.4 in early October, up from 53.7 in September, pointing to the biggest advance in the region's factory activity since August 2018. A reading below 50 represents a contraction in the activity. Economists had expected the indicator to drop to 53.1 in October. At the same time, the flash Eurozone Services PMI fell to 46.2 from 48.0 in September. That was the lowest reading since May and below economists' forecast of 47. As a result, the flash IHS Markit Eurozone Composite PMI, which looks at activity in both manufacturing and services sectors, fell to 49.4 this month from to 50.4 in September, recording the first contraction of business activity since June. The report also revealed divergent trends across the region: Germany continued to report steady growth Germany's October flash composite index edged down from 54.7 to

54.5), while France recorded deterioration in its business activity for the second straight month (France's October flash composite flash PMI fell from 48.5 to 47.3).

Eurozone's economic activity contracted this month as a wave of coronavirus infections triggered lockdowns and curfews in some of the largest member states.

Coronavirus cases continue to surge in Europe, making the region the epicenter of the pandemic once again after successfully slowing the outbreak early this. To combat the spread of the virus, the EU governments are forced to reimpose the restrictions.