Eurozone PMIs beat forecasts in July but geopolitical risks and rising oil prices limit EUR gains against USD.
The Euro (EUR) edged higher against the US Dollar (USD) on Friday but remained below 1.1400, near its year-to-date low of 1.1324. Stronger-than-expected Eurozone PMI data, with manufacturing at 52.0 and services at 51.6, failed to lift the currency amid broader risk aversion.
Eurozone manufacturing activity accelerated from 51.4 in June, surpassing expectations of 51.3, while services rebounded to expansion after three months of contraction. German PMIs also exceeded forecasts, with manufacturing at 52.2 and services at 49.6.
Rising geopolitical tensions in the Middle East, including attacks on Saudi vessels and US threats of retaliation, pushed Brent crude above $90, pressuring the Euro. Investors remain cautious over the economic impact of higher oil prices on the Eurozone.