• German Manufacturing PMI arrives at 42.9 in May vs. 45.0 expected.
• Services PMI in Germany rises to 57.8  in May vs. 55.5 expected.
• EUR/USD extends losses below 1.0800 on mixed German PMIs.

The German manufacturing sector activity runs deeper into contraction in May while the services sector continues to showcase strength, the preliminary business activity report from the HCOB survey showed this Tuesday.

The Manufacturing PMI in Eurozone’s economic powerhouse came in at 42.9 this month, compared with 45.0 expected and 44.5 previous figure. The index hit a 36-month low.

Meanwhile, Services PMI rose from 56.0 in April to 57.8 in May as against the 55.5 print expected. The PMI reached the highest level in 21 months.

The HCOB Preliminary Germany Composite Output Index arrived at 54.3 in May vs. 53.5 expected and April’s 54.2. The gauge registered a 13-month top.

FX implications

EUR/USD is extending losses below 1.0800 on the mixed German data. The pair is trading 0.15% lower at 1.0795, at the time of writing.