EUR/USD, EUR/JPY flows: EUR data weak as expected, little impact

Nothing particularly surprising in this morning’s data. Eurozone money growth remains very weak.  Although y/y M3 growth is rising slightly from the lows, it remains negative, while y/y growth in loans to households and businesses continues to weaken, and is at the lowest since 2015.  Final manufacturing PMIs were revised slightly higher, but remain at very low levels. So although there is nothing particularly surprising in the data, it continues to paint a picture of weakness, and suggests recent EUR strength may fade. However, yields are generally higher this morning, so EUR/JPY is likely to stay better bid for now, while EUR/USD should hold close to 1.10.