Eurozone July flash PMIs exceeded expectations, lifting EUR while USD pressure persists after US Treasury buyback plans.
The Euro traded near 1.1700 against the US Dollar on Friday, extending a weekly gain above 1% and approaching a three-month high. Stronger-than-expected Eurozone business activity data bolstered confidence in the common currency.
Eurozone July flash PMI figures showed manufacturing activity at 52.8, up from 51.9 in June, defying forecasts of a slight decline. Services activity held steady at 51.7, also above consensus estimates. German data presented a mixed picture, with manufacturing PMI rising to a 51-month high of 54.1 while services contracted further.
The US Dollar remained under pressure following the Treasury’s announcement of long-term bond buybacks, aimed at curbing a surge in yields. The 30-year Treasury yield hit a 19-year high earlier this week after US debt surpassed USD 40 trillion.