BREAKING: EURUSD drops below 1.07 after PMIs

Flash PMI indices for June were a key release scheduled for the European sesion today. Markets were focused primarily on releases from France (8:15 am BST) and Germany (8:15 am BST), and were expecting a deterioration in manufacturing and services sectors.

French data turned out to be a big disappointment, with both indices unexpectedly weakening. Manufacturing index dropped from 46.4 to 45.3 (exp. 46.8), while services index dropped from 49.3 to 48.8 (exp. 50.0). This unexpected deterioration put pressure on EUR, causing EURUSD to drop below 1.07 mark.

German data released 15 minutes later also turned out to be a disappointment - manufacturing index plunged from 45.4 to 43.4 (exp. 46.4) while services index dropped from 54.2 to 53.5 (exp. 54.4). EUR deepened declines following German release and EURUSD is approaching June 14 lows.

France, flash PMIs for June

• Manufacturing: 45.3 vs 46.8 expected (46.4 previously)
• Services: 48.8 vs 50.0 expected (49.3 previously)

Germany, flash PMIs for June

• Manufacturing: 43.4 vs 46.4 expected (45.4 previously)
• Services: 53.5 vs 54.4 expected (54.2 previously)

Source: xStation5