EUR, GBP flows: UK PMI falls but holds up better than Eurozone

UK PMI held up slightly better than the Eurozone, and GBP has benefitted as a result, with EUR/GBP slipping sub 0.8450. But the weaker PMIs in Europe and Japan don’t bode well for the US PMI later. Whether that will have much negative USD impact is not clear, as there is little attraction in the EUR and the JPY has failed to gain despite lower US yields in the last few weeks. But a more risk negative tone seems likely, which may at least favour the CHF.