EUR/USD pressured as French PMI disappoints below expectations

EUR/USD faces downward pressure following weaker-than-expected French PMI data for December. The services PMI dropped to 50.2 from 51.4 previously, missing the 51.1 forecast and barely holding above the 50.0 expansion threshold. Manufacturing showed surprising strength at 50.6 versus 48.1 expected, but the composite PMI at 50.1 indicates economic stagnation. The mixed data suggests France's economy is losing momentum heading into year-end, with the crucial services sector showing particular weakness. This divergence between manufacturing and services creates uncertainty for EUR traders. The data weighs on the euro as markets assess whether this weakness will spread to other Eurozone economies. Technical levels show EUR/USD testing support near 1.0500, with resistance at 1.0550. Traders await German and Eurozone-wide PMI releases later today for further direction, as persistent economic weakness could influence ECB policy decisions in early 2025.