EUR/USD pressured as Spain services PMI disappoints at 53.5

EUR/USD faced downward pressure following Spain's January services PMI release, which came in at 53.5, significantly below the expected 56.6 and down from December's 57.1. The disappointing data marks the weakest new business growth since June last year, attributed to sluggish demand conditions across Spain's service sector. While the reading remains above the 50-level indicating expansion, the sharp deceleration raises concerns about eurozone economic momentum. The miss adds to existing euro weakness, with traders now closely monitoring upcoming eurozone-wide PMI data for confirmation of broader slowdown. Despite the headline disappointment, employment growth remained positive and business confidence improved, providing some support. Technical levels show EUR/USD testing support near 1.0780, with resistance at 1.0820. Further eurozone data weakness could accelerate euro selling, while any positive surprises might offer relief rallies.