Eurozone Composite PMI rises to 51.9 in July, beating forecasts, but the euro weakens as US services data supports the dollar.
EUR/USD fell to near 1.1370 on Friday, retreating despite better-than-expected Eurozone business activity data. The US Dollar Index held firm around 101.50, limiting upside for the pair.
Germany’s Composite PMI climbed to 51.2 in July from 49.5, surpassing expectations of 49.8. Eurozone Composite PMI rose to 51.9 from 50.0, beating the 50.3 forecast. Services PMI rebounded to 51.6, signaling expansion, while manufacturing also improved.
US Services PMI surged to 53.6 from 51.2, exceeding estimates and supporting Treasury yields. Risk sentiment improved on reports of potential US-Iran talks, reducing safe-haven demand for the dollar.