EUR/USD Steady as France Services PMI Beats Expectations at 49.6

EUR/USD saw limited reaction following the release of France's February flash PMI data, which presented a mixed picture for the Eurozone's second-largest economy. The services PMI rebounded to 49.6, beating the 49.2 consensus and improving from January's 48.4 reading, reaching a two-month high. However, the manufacturing PMI disappointed at 49.9, falling short of the 51.0 expected and slipping back into contraction territory from January's 51.2. The composite PMI edged up to 49.9 versus 49.7 expected, improving from 49.1 prior. A key concern for EUR bulls is the continued decline in new business inflows, which contracted for a third consecutive month at the fastest pace since July 2025, suggesting underlying demand weakness persists. While the services recovery offers modest support, the manufacturing miss and deteriorating order books temper optimism for the euro. Traders will now look to Germany's flash PMI and the broader Eurozone composite reading for further directional cues on EUR/USD. The data keeps the ECB's easing bias intact, limiting euro upside potential.