FXstreet.com (Barcelona) - The Markit manufacturing PMI is seen as the main driver of today's European morning, with the EUR/USD stuck at its lows already below the 1.2900 psychological level. The Spanish figure implies more contraction than expected, easing from 44.6 to 43.5 (consensus of 44.0) in October, and the Italian data softened from 45.7 to 45.5 as expected.

The French indicator improved from 42.7 to 43.7, beating consensus of 43.5. The Germany manufacturing PMI dropped less than expected, from 47.4 to 46.0, instead of 45.7. Final data in the EMU improved from 45.3 to 45.4, small but unexpected change. The overall manufacturing data didn't quite please market participants, already extending daily losses below 1.2880, with a current low at 1.2872.

“EUR/USD is drifting lower, the 50 minute chart is still implying that w should allow for a return to 1.3025/45 near term and possibly 1.3122 (resistance line drawn from the September peak)”, wrote Commerzbank analyst Karen Jones, pointing to downside attention at 1.2803/32 (200 day ma and October low).