Uro rallied versuspound

The euro may have fallen against the greenback, but the currency rallied versus the rest of the majors, particularly against the British pound. European data was surprisingly strong and indicated that the region may have one of the strongest economies around. According to the IFO survey, German business confidence rose to a 13-month high of 91.9 in October from 91.3, adding to indications that growth is improving in Europe’s largest economy. The news comes a week after the German government raised forecasts for GDP, as they predict the economy will grow by 1.2 percent in 2010 after contracting 5 percent in 2009. Furthermore, the purchasing managers' index (PMI) for the manufacturing sector rose above 50 in October - signaling an expansion in activity - for the first time since May 2008. Meanwhile, PMI for the services sector signaled expansion for the second straight month by rising to match the February 2008 high of 52.3 from 50.9. Ultimately, this pushed composite PMI up to a nearly 2-year high of 53.0 from 51.1, suggesting the Euro-zone is closer to recovery than many other places.