BREAKING: EUR slumps after French and German PMIs

Flash PMI indices for June were a key point in today's European economic calendar. As usual, attention was mostly paid to readings from France and Germany at 8:15 am BST and 8:30 am BST, respectively.

French data turned out to a negative surprise. While manufacturing gauge ticked lower more or less in-line with market expectations, services reading turned out to be a huge disappointment with the index plunging from 52.0 to 48.0 and into a contraction territory. EUR took a hit on the release with EURUSD dropping below 1.09.

German data also turned out to be a disappointment. German services gauge dropped from 56.2 to 54.1 while manufacturing reading showed a drop from 43.2 to 41.0. This was the lowest reading for the German manufacturing PMI since May 2020. EUR deepened declines further following German print and painted a daily low near 1.0850.

France

• Manufacturing: 45.5 vs 45.4 expected (45.7 previously)
• Services: 48.0 vs 52.0 expected (52.5 previously)

Germany

• Manufacturing: 41.0 vs 43.5 expected (43.2 previously)
• Services: 54.1 vs 56.2 expected (56.2 previously)

EURUSD plunged following flash PMIs for June from France and Germany. The pair broke through a number of technical supports in the process - 1.0910 support zone, upward trendline, lower limit of the Overbalance structure and 200-hour moving average (purple line). Source: xStation5