EUR/USD Under Pressure as Eurozone Services PMI Plunges to 47.4

EUR/USD faces downside pressure following a sharp miss in Eurozone April flash services PMI, which dropped to 47.4 against expectations of 49.8 and well below the prior reading of 50.2, pushing the sector firmly into contraction territory. The composite PMI also disappointed at 48.6 versus 50.1 expected, down from the previous 50.7, signaling a broader economic slowdown across the bloc. Manufacturing PMI provided a rare bright spot, rising to 52.2 versus 50.9 expected, though analysts caution this strength likely reflects frontloading of orders rather than genuine demand recovery, a pattern consistent with earlier French and German regional reports. The divergence between a contracting services sector and temporarily inflated manufacturing data raises concerns about the sustainability of Eurozone economic momentum. For the European Central Bank, the weak services data could reinforce the case for maintaining an accommodative policy stance. Traders should monitor EUR/USD for potential tests of nearby support levels, as sustained weakness in the dominant services sector may weigh on euro sentiment in the near term.