Euro Loses Ground Against Dollar As German Services PMI Slips Into Contraction; EURINR Dumps 90 Levels During Intraday Moves

Published on Aug 23, 2023 13:52

Euro slipped sharply against the dollar in immediate reaction to German data that showed services sector in the region fell back into contraction in August. Germany Services PMI dropped to 47.3 in August, down from July`s 52.3 and well below the market consensus of 51.5, a preliminary estimate showed. The latest reading also pointed to the first contraction since December 2022 and to the greatest extent since November 2022. At 44.7, the flash composite output index hit a 39-month low in August, down from 48.5 in July. Germany`s private sector suffered the steepest contraction in more than three years in August, flash data released by S&P Global and Hamburg Commercial Bank showed. EURUSD was trading at $1.0837, down 0.27% post the data. Sharp decline in euro also supported the dollar index to rise to 103.62 in which the common currency carries maximum weight. Meanwhile, on the NSE, EURINR August contract also lost ground and was down around 0.7% at 89.76.