ForexLive European FX news wrap: Euro slumps as PMI data disappoints

<p>Headlines:</p><ul><li><a href="https://www.forexlive.com/news/euro-falls-further-as-german-pmi-disappoints-heavily-20230724/">Euro falls further as German PMI disappoints heavily</a></li><li><a href="https://www.forexlive.com/news/bond-yields-hold-lower-after-european-pmi-woes-today-20230724/">Bond yields hold lower after European PMI woes today</a></li><li><a href="https://www.forexlive.com/news/germany-july-flash-manufacturing-pmi-388-vs-410-expected-20230724/">Germany July flash manufacturing PMI 38.8 vs 41.0 expected</a></li><li><a href="https://www.forexlive.com/news/france-july-flash-services-pmi-474-vs-484-expected-20230724/">France July flash services PMI 47.4 vs 48.4 expected</a></li><li><a href="https://www.forexlive.com/news/eurozone-july-flash-services-pmi-511-vs-515-expected-20230724/">Eurozone July flash services PMI 51.1 vs 51.5 expected</a></li><li><a href="https://www.forexlive.com/news/even-the-details-dont-make-for-good-reading-on-todays-pmi-data-from-europe-20230724/">Even the details don't make for good reading on today's PMI data from Europe</a></li><li><a href="https://www.forexlive.com/news/uk-july-flash-services-pmi-515-vs-530-expected-20230724/">UK July flash services PMI 51.5 vs 53.0 expected</a></li><li><a href="https://www.forexlive.com/news/chinas-politburo-domestic-demand-is-insufficient-economic-recovery-will-be-tortuous-20230724/">China's Politburo: Domestic demand is insufficient, economic recovery will be 'tortuous'</a></li><li><a href="https://www.forexlive.com/news/what-are-the-expectations-ahead-of-the-major-central-bank-decisions-this-week-20230724/">What are the expectations ahead of the major central bank decisions this week?</a></li></ul><p>Markets:</p><ul><li>NZD leads, EUR lags on the day</li><li>European equities slightly lower; S&amp;P 500 futures up 0.2%</li><li>US 10-year yields down 4.3 bps to 3.795%</li><li>Gold up 0.4% to $1,967.18</li><li>WTI crude up 0.6% to $77.56</li><li>Bitcoin down 2.1% to $29,252</li></ul><p>The highlight of the session was the rather poor and disappointing PMI readings in Europe and the UK today. Things were quieter in the run up to that before the French report disappointed and then the German report somehow managed to be worse. That took the euro for a tumble before the pound joined in as the UK report was also sluggish.</p><p>EUR/USD was holding around 1.1140 before falling to 1.1120 initially, then sliding further to a low of 1.1066 earlier before keeping closer to 1.1100 now. The drag on the currency came alongside that of regional bond yields, as markets get a little more worried about recession risks.</p><p>The fall in bond yields is helping to keep a bid in the Japanese yen at least. USD/JPY was holding around 141.30-40 early on in Asia before falling further to a low of 140.85 and is keeping thereabouts now.</p><p>As for the pound, it fell from 1.2850 to around 1.2810 against the dollar, before paring losses now to 1.2850 levels again as the greenback loses a bit more ground.</p><p>The dollar itself was steadier early, before keeping a fair bit more mixed after the barrage of PMI data. But is now holding slightly lower on the balance of things with USD/JPY leading the drop.</p><p>The overall risk mood is keeping steadier despite some mixed tones in Europe. US futures are keeping more optimistic, so that should at least help with some positivity ahead of the Wall Street open later.</p>

This article was written by Justin Low at www.forexlive.com.