Euro falls on gloomy PMI data, dollar hits 2-month high

 LONDON (Reuters) – The euro fell to a more than two-month low against the dollar and a 12-month low against the pound on Wednesday after survey data showed German and euro area business activity slumped by more than expected in August.

HCOB’s flash Composite Purchasing Managers’ Index (PMI) for the euro area, compiled by S&P Global and seen as a good barometer of overall economic health, dropped to 47.0 in August from July’s 48.6, its lowest since November 2020.

The services PMI sank to 48.3 from 50.9, its first time below the 50 mark that separates growth from contraction this year.

The German composite figure fell to its lowest since May 2020 as a deepening downturn in manufacturing output was accompanied by a renewed contraction in services activity.

The single currency weakened after the German data, hitting its lowest level against the dollar since June 15 at $1.0812 and a 12-month low against sterling at 84.93 pence.


https://www.globalbankingandfinance.com/euro-falls-on-gloomy-pmi-data-dollar-hits-2-month-high/

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