EUR/USD: Euro tumbles amid slowing EU’s business activity, drops below 1.0800

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The Euro (EUR) extended its losses against the US Dollar in the mid-North American session on Tuesday after data revealed that business activity in th

is slowing down amid the most aggressive tightening cycle of the European Central Bank . This underpinned the Greenback, alongside Fed officials giving a green light for higher rates. The EUR/USD is trading at 1.0726, with losses of 0.63%.

Risk aversion triggered flows towards the Greenback; consequently, the Euro dropped. Data-wise, the Eurozone revealed its Producer Price Index for July, which came at -0.5% less than estimates of -0.6% contraction, though worse than June’s -0.4% plunge. Despite showing the inflation trend continues downwards, inflation on the consumer front remains above 5%.

 

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