The German July flash PMI data:

• Manufacturing: Actual 38.8, Expected 41, Previously: 40.6
• Services: Actual 52, Expected 53.1, Previously: 54,1

Manufacturing PMI for July was significantly lower than expected, coming in at a very low value of 38.8 versus the expected 41 indicating a significant contraction in the sector.

• The services sector, although missing July estimates, is somewhat offsetting the downturn in manufacturing.
• The German economy has entered contraction territory at the start of Q3 due to these factors, leading to a drop in the euro and regional bond yields.

EURUSD, M15 interval, source xStatio 5