Euro Dips Lower After Eurozone and German Data
Euro dips versus US dollar, falling below $1.16 level. The EUR/USD pair lost 0.04% to trade at 1.1577 level. The single currency stays weak, despite Eurozone and German Services PMI reports rose slightly in August. Eurozone Services PMI rose to 54.4 in August from 54.2 in July, while the German Services PMI from 54.1 to 55.0 points. Meanwhile, the German release missed the forecast for a second straight month.
Eurozone retail sales fell for the first time in three months in July. Volume of retail sales in the euro area fell by 0.2% month-on-month and rose by 1.1% year-on-year. Economists had expected the same 0.2% drop in July and a 1.3% yoy growth after June’s increase of 0.3% month-on-month and 1.5% from the same period a year earlier.
Trade tension between the US and China continues to influence the markets. US President Donald Trump aims to impose tariffs on $200 billion of Chinese goods, which could go into effect as soon as Friday when a public comment period on the taxes concludes. It's unclear whether the new tariffs will be set at 10% or 25%. The Trump administration slapped 25% tariffs on $34 billion of Chinese imports in July and another $16 billion last week.