There were no surprises from Eurozone PMI reports, and the euro remains almost unchanged. German and Eurozone Manufacturing PMIs came in at 53.7 and 51.9 respectively, indicating expansion. However, French Manufacturing PMI came in at 48.6 points. This indicator has managed to crack the 50-point threshold.
Sterling dived and gilts rose on Friday after surveys showed business activity shrinking at a fast pace after the shock Brexit vote last month, bolstering expectations the Bank of England will have to do more next month to stimulate growth.
The PMI survey of services sector purchasing managers fell to 47.4 in July from 52.3 in June, marking the steepest drop since records began in 1996 and the lowest reading since March 2009. Economists polled by Reuters had expected a much smaller fall to 49.2.