EUR flows: German services strength supports EUR

Weaker than expected French PMIs have been offset by a much stronger than expected German services PMI, reversing the initial weakness in the EUR. We are slightly sceptical about the trustworthiness of the German services number, since manufacturing showed a significant decline, but for today the data will no doubt be taken at face value, and the Eurozone PMI is likely to be slightly stronger than the consensus as a result, supporting the EUR.