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German manufacturing PMI dropped to 47.9 points while it was expected to remain unchanged at 49 points. Services PMI dropped back to negative territory: to 49.2 points while it was predicted to tick up from 50.9 to 51.1 points. A score of 50 points separates contraction and growth.

EUR/USD was advancing towards the release, rising to around 1.3080 and fell sharply to 1.3025. Update: the pair extends its falls and gets closer to 1.30. Update 2: EUR/USD loses 1.30.

Earlier, French manufacturing PMI came out at 44.4 points, marginally higher than expectations for 44.2 and also above last month’s 44 points. Services PMI provided a better surprise, rising from 41.3 to 44.1, above expectations of 42.3 points.

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The all-European numbers are due for 8:00 GMT. They are expected to remain between 46 and 47 points. After the disappointing German numbers, expectations are now lower.

For more, see the EUR/USD forecast.