This morning, slowdowns were visible as Eurozone businesses had their worst month in over a year as expansion dropped to a 13 month low lead by particularly poor performance by France. Chris Williamson, the chief economist at Markit said that ‘The slowdown in growth of business activity, accompanied by a similar easing in the pace of job creation and the steepest fall in prices charged for a year, suggest that the region's recovery is losing momentum.’
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On the back of this, the Dollar weakened against European majors due to the weaker than expected data. This morning Sterling extended gains regardless of the negative data. The UK market service PMI fell to a three year low. At 13:30 GMT, US initial jobless claims rose unexpectedly by 6000 showing that unemployment benefits unexpectedly increased. The markets await more US data this afternoon before Non-Farm payrolls tomorrow.
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