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German PMI data falls further into contractionary territory too- EUR/USD slips again

As just noted in the penultimate update, the French flash PMI data was weaker than expected a short while ago. To add more detail on that, the service sector reading was expected to rise to 46, from a previous reading of 45.4. It actually fell to 44. The manufacturing index was expected to 43.3 from 42.9. That fell as well, to 42. So, the German equivalent data has just been released and was expected to come in slightly better as well. However, that has also missed on the downside and all three measures, including the composite reading, with all fallen further into contractionary territory. So, the EUR/USD has slipped back further. It has now dropped to below 1.0950. This is not great news for the European economy and pours a good deal of cold water on all the ECB rhetoric from yesterday. The EUR/USD is now trading at 1.0955
 

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