EUR/USD Lifted as Eurozone Composite PMI Expands to 51.9, Beating Forecasts

EUR/USD is gaining upward momentum after Eurozone flash PMIs for July delivered across-the-board beats, signaling the first rise in business activity in four months. The composite PMI climbed to 51.9 versus the 50.3 consensus and prior reading, while services hit a 5-month high of 51.6 against 49.8 expected, and manufacturing reached a 3-month high of 52.0 versus 51.5 forecast. The data reflects a meaningful rebound in demand conditions across both sectors, suggesting the Eurozone economy is building positive momentum entering Q3. However, the ECB is expected to remain primarily focused on inflation data when calibrating monetary policy, which may temper the euro's gains. Markets may also partially overlook the PMI strength given the prevailing focus on US-Iran geopolitical developments. Technically, the strong data provides fundamental support for EUR/USD, though traders should watch for resistance at key psychological levels and consider positioning ahead of US flash PMI releases later in the session.