EUR, GBP, CHF, USD, JPY flows: EUR drops on weak PMIs

Very weak French and German PMI have triggered general EUR losses, particularly against the safe havens. The weakness in the French PMI may relate to post-Olympic effects, but weakness in German manufacturing has extended hitting its lowest for a year. EUR yields are sharply lower on the day as a result, undermining the EUR across the board, although spreads started from levels that were consistent with a higher EUR/USD, so the impact has been greater in EUR/JPY. Further losses look likely, with GBP also potentially vulnerable.