EUR flows: Weaker German PMI triggers weaker EUR

Weaker German PMI follows the stronger French data. Both services and manufacturing fell back, and the composite index saw its third consecutive decline, while manufacturing was the lowest since March. While the rest of the Eurozone is certainly outperforming Germany, the struggles of the German economy argue against EUR strength, and if risk positive conditions persist we would still favour the AUD and other higher yielders over the EUR.