Eurozone September Composite PMI Jumps to 53.1, Lifting ECB Rate Hike Bets

Eurozone economic activity accelerated to a 41-month high in September, cushioning EUR/USD downside amid broader US Dollar strength. The flash composite PMI rose to 53.1, beating expectations of 51.7 and the prior 52.0. Services surged to 53.0 against a 51.5 forecast, while manufacturing held steady at 52.7. Following accelerating input costs and output prices, money markets increased the probability of a 25 basis point ECB rate hike in October to 48%, up from 45%, with swaps pricing over 75 basis points of tightening over the next 12 months.