Economic statistics from Germany led to the morning fall of the euro

The exchange rate of the European currency paired with the US dollar collapsed at the beginning of trading on Friday, but managed to recover quickly enough. The daily minimum of the EUR/USD pair was fixed at 1.0131, the current quote of the pair is 1.0255. 

Pressure on the euro was exerted by data on a decline in economic activity in Germany. In particular, the composite index of business activity in industry and services of Europe's largest economy, according to preliminary estimates, fell to 48 points from the June level of 51.3 points, which was the lowest since May 2020.

In addition, the composite PMI business activity index in industry and services of all 19 eurozone countries fell to 49.4 points in July from 52 points in June. The indicator has become the lowest in 17 months. At the same time, analysts expected a decline to only 51 points.

Economists note that the decline in production volumes was widespread, while the decline in the manufacturing industry deepened, and activity in the services sector fell into contraction territory for the first time since December.