Euro Slides Amid Strong US Business Data and Hawkish Fed Expectations

The Euro slipped against the US Dollar on Friday as strong business activity data and hawkish Federal Reserve expectations kept the Greenback near recent highs.

According to preliminary S&P Global Composite Purchasing Managers' Index (PMI) data, the US business sector rose to an eight-month high of 53.6 in July from 51.9 in June, while the Services PMI climbed to 53.6 from 51.2.

The Manufacturing PMI edged down to 53.8 from 53.9, but overall the data points to a strengthening US economy.

This has led markets to anticipate an interest rate hike in September, with the CME FedWatch Tool showing an 80% chance of a rate increase.