Euro under pressure after weak PMI data – London Business News | Londonlovesbusiness.com

The largest European economies released their Services PMIs with mixed results.

While France and Italy saw declines, Spain surprised with a strong rise to 57 points. However, both Germany and the eurozone figures overall fell to 50.6 and 51.4 respectively.

These results strengthen the narrative of further cuts by the European Central Bank, putting pressure on the euro as investors could favor assets with higher yields. Additionally, developments in France, which is seeing a growing fiscal deficit and potential plans to cut 60 billion euros in expenses and eliminate 100,000 civil service jobs, could fuel concerns about economic uncertainty in the eurozone.

All eyes could turn to key U.S. economic data. The ISM Services PMI is expected to remain relatively stable and Non-Farm Payrolls figures are anticipated to remain in line with previous reports. However, weaker-than-expected data could challenge the recent robust data from the US economy, potentially pushing the Fed to accelerate rate cuts, which would put pressure on the dollar.