 Euro fell notably today, along with decline in Eurozone government bond yields, following weaker-than-expected PMI data. Political instability in France is negatively impacting business activity, while Germany's economic recovery has lost momentum. At the same time, surge in Germany's services inflation pressures suggests that ECB is unlikely to implement back-to-back rate cuts in July. The key question now is whether the results of France's snap election, scheduled for June 30 to July 7, will provide positive outcomes for investors and businesses, improving market sentiment. Sterling also weakened after the release of lower-than-expected Services PMI data. Despite the upcoming general election on July 4, UK faces relatively lower political risk, with Labour expected to win by a landslide according to various polls. This has not provided enough support to Sterling, which continues to struggle alongside other European majors. Meanwhile, Swiss Franc is the weakest among the three major European currencies today, extending its pullback following SNB's rate cut, but with relatively weak momentum... |
