EUR/USD Recovers Amid Hawkish ECB and Stronger PMI

The EUR/USD has recovered some of its recent losses but remains below $1.1400, according to Brown Brothers Harriman's (BBH) Elias Haddad.

A stronger-than-expected Eurozone July PMI and a hawkish hold from the European Central Bank (ECB) are supporting the Euro, although higher oil prices keep growth risks skewed lower.

The composite PMI increased to a five-month high at 51.9 (consensus: 50.2, prior: 50.0), reflecting both a recovery in services business activity and a faster expansion in manufacturing production.

Despite this, the ECB's decision to leave interest rates unchanged at 2.25% is seen as hawkish, with President Christine Lagarde stating that the decision was unanimous but some governors asked themselves whether a rate hike should be considered.