EUR/USD Mixed as French Services Rebound but Manufacturing Slips

EUR/USD faces mixed signals from French July flash PMI data, which showed a strong services rebound offset by a softening manufacturing sector. The services PMI surged to a 7-month high of 49.8, well above the 47.5 forecast and prior 46.8, with demand for services rising for the first time since November. However, the manufacturing PMI slipped to 50.0 from 51.2, missing the 51.0 consensus and sitting right on the expansion-contraction boundary. The composite PMI improved to 49.6 versus 47.8 expected, still technically in contraction but marking a significant improvement from June's 47.2. The services recovery is the standout, suggesting domestic consumption may be stabilizing in France's consumption-driven economy. The manufacturing step-back warrants monitoring as it could signal fading momentum in the industrial sector. For traders, the net effect is modestly positive for the euro, as the services improvement carries greater weight in the French economy, though the below-50 composite reading limits bullish enthusiasm.