Euro Steadies as PMI Data Eases Stagflation Concerns

The euro stabilized on Monday as preliminary Purchasing Managers' Index (PMI) data showed that business activity in the eurozone is expanding, albeit at a modest pace.

This resilience, particularly in the services sector, has led analysts at BNY to temper fears of stagflation, a toxic mix of stagnant growth and high inflation.

The PMI figures for the eurozone indicated that while the manufacturing sector remains under pressure, the services sector has shown unexpected strength, suggesting that the broader economy is not contracting as sharply as some had feared.