Euro sinks into losses after weak Euro zone PMI

The shared European currency lost its opening bell drive on Friday and returned to losses after two of the euro zone's largest economies disappointed with their PMI readings. The euro was trading down 0.32% at $1.0945 shortly after the data and made low of $1.0930.

The French economy failed to maintain momentum in July, with both the manufacturing and services PMIs missing forecast, a preliminary survey by Markit Economics revealed on Friday. The flash manufacturing PMI in France came in at 49.6 in the seventh month of the year, worse than the final reading of 50.7 seen in June, and below expectations of 50.8.

Activity in the German manufacturing sector remained in expansion for the eighth successive month albeit with a weaker reading, the latest data revealed. July's preliminary PMI for Germany's manufacturing sector fell to 51.5, down from June's final reading of 51.9 points.

Moreover, manufacturing sector results across the euro zone pointed to weaker output in July, flash data showed on Friday. The services sector continued to report healthy activity with a reading of 53.8, albeit at a slightly slower pace than a month ago when it hit 54.4, the fresh preliminary report from Markit Economics showed.

The flash manufacturing PMI for the euro zone came in at 52.2 points in July, compared to 52.5 in June. The flash PMI Composite reading slipped to 53.7 from 54.2 seen in June.