The euro erased earlier gains against the dollar after weaker-than-expected German PMI figures raised growth concerns.
EUR/USD retreated from daily highs, trading near 1.1430 after German HCOB Purchasing Managers’ Index data disappointed markets. The pair had held steady earlier but reversed gains following the release.
The PMI figures, a key gauge of economic activity, fell short of expectations, signaling potential weakness in Germany’s manufacturing and services sectors. Prior prints had shown modest improvement, but today’s data underscored lingering growth risks in the eurozone’s largest economy.
Markets are now assessing the implications for European Central Bank policy, with weaker economic data potentially reducing pressure for further rate hikes.