The Euro (EUR) posts moderate losses against the US Dollar (USD) on Monday, trading at 1.1525 at the time of writing, but standing close to the seven-week highs, at 1.1556 hit earlier on the day. Final Eurozone Purchasing Managers Index (PMI) figures confirmed a moderate expansion of the sector's activity in July, while hopes of new peace talks between the US and Iran are providing additional support to the Euro.
Eurozone’s final HCOB Manufacturing PMI has been revised down to 51.9 in July from previous estimations of 52.0. This is still a moderate improvement from June’s 51.4 reading and its best performance since April, which suggests that the region’s factory activity is showing resilience to the energy shock and the uncertainty from Iran’s war.
Down to member Spain’s and Italy’s HCOB Manufacturing PMIs have shown moderate expansion in July, yet short of the levels anticipated by the market’s consensus. German Manufacturing PMI has shown a significant improvement, while French manufacturing activity contracted against expectations.
Before that, German Retail Sales disappointed, showing a 1.1% fall in June, more than twice the 0.5% decline forecasted by market analysts, and it could have been much worse if it were not for the 2.1% rise in petrol station sales. These figures follow a 1.2% increase in May.
The Euro is drawing some support from a moderate risk-on mood and lower Oil prices, as hostilities in the Middle East were halted and US President Donald Trump affirmed that negotiations with Tehran will begin on Monday. Iran’s Foreign Ministry Spokesperson Esmail Baghaei, however, has denied any talks with the US regarding Hormuz, a vital sea corridor for global crude supplies.
Analysts at ING argue that EUR/USD “should probably be doing better,” pointing to “decent Eurozone hard data last week, lower oil prices and lots of Dollar selling from Japan” as supportive factors. Looking forward, however, they doubt that “such news will have any lasting impact on the Euro.”
The experts at ING assess that the bigger and more lasting driver of the EUR/USD trend is the Fed’s September decision, noting that this “remains unresolved,” and that US data this week will determine whether the pair ends the week “pressing 1.1615/20 resistance or trading back below 1.15.”
The Manufacturing Purchasing Managers Index (PMI), released on a monthly basis by S&P Global and Hamburg Commercial Bank (HCOB), is a leading indicator gauging business activity in the Eurozone manufacturing sector. The data is derived from surveys of senior executives at private-sector companies from the manufacturing sector. Survey responses reflect the change, if any, in the current month compared to the previous month and can anticipate changing trends in official data series such as Gross Domestic Product (GDP), industrial production, employment and inflation. The index varies between 0 and 100, with levels of 50.0 signaling no change over the previous month. A reading above 50 indicates that the manufacturing economy is generally expanding, a bullish sign for the Euro (EUR). Meanwhile, a reading below 50 signals that activity among goods producers is generally declining, which is seen as bearish for EUR.
Read more.Last release: Mon Aug 03, 2026 08:00
Frequency: Monthly
Actual: 51.9
Consensus: 52
Previous: 52
Source: S&P Global
The Manufacturing Purchasing Managers Index (PMI), released on a monthly basis by S&P Global and Hamburg Commercial Bank (HCOB), is a leading indicator gauging business activity in Germany’s manufacturing sector. The data is derived from surveys of senior executives at private-sector companies. Survey responses reflect the change, if any, in the current month compared to the previous month and can anticipate changing trends in official data series such as Gross Domestic Product (GDP), industrial production, employment and inflation. As Europe’s main manufacturing hub, German PMI data can also be a bellwether of the sector’s health in the broader continent. The index varies between 0 and 100, with levels of 50.0 signaling no change over the previous month. A reading above 50 indicates that the manufacturing economy is generally expanding, a bullish sign for the Euro (EUR). Meanwhile, a reading below 50 signals that activity among goods producers is generally declining, which is seen as bearish for EUR.
Read more.Last release: Mon Aug 03, 2026 07:55
Frequency: Monthly
Actual: 52.2
Consensus: 52.2
Previous: 52.2
Source: S&P Global