• Eurozone Manufacturing PMI contracts to 42.7 in July, missing estimates of 43.5.
• Bloc’s Services PMI drops to 51.1 in July vs. 51.5 expected.
• EUR/USD extends losses toward 1.1050 after dismal German and Eurozone PMIs.

The Eurozone manufacturing sector pain deepened further in July, the latest data from HCOB's latest purchasing managers index survey showed Monday.

The Eurozone Manufacturing Purchasing Managers Index (PMI) declined to 42.7 in July as against the market expectations of 43.5 and below the 43.4 seen in June. The index hit a 38-month low.

The bloc’s Services PMI eased to 51.1 in July from 52.0 seen in June, reaching a six-month low, arriving below the 51.5 estimates.

The HCOB Eurozone PMI Composite dropped to 48.9 in July vs. 49.7 expected and 49.9 prior. The index recorded the lowest level in eight months.

FX implications

EUR/USD is falling further toward 1.1050 after Eurozone PMIs disappointed markets. The spot is down 0.41% on the day, trading at 1.1075, as of writing.