EUR flows: EUR slightly higher after better PMI

Eurozone PMIs coming in on the strong side of consensus, with little or no mention in the text of any impact from tariffs or of the EU/US trade deal. This may still be to come, but for now the data suggest weak but steady growth. The EUR has firmed up modestly in response to the data, and could yet benefit further if, as we expect, the US data weakens more than expected this afternoon. But from a big picture perspective the numbers don’t significantly change the underlying picture, and a 1.1590-1.1730 range in EUR/USD continues to look hard to break unless Powell’s speech at Jackson Hole challenges current market thinking on Fed policy.