If even the ECB surprising with a 50 bps rate hike isn't enough to get the euro buoyed, I'm afraid nothing else will. The currency feels like it is fighting gravity at the moment and is being dealt another blow after French PMI readings highlighted that the economy is grinding towards a halt in July as soaring inflation weighs on demand.
Of note, the manufacturing sector has fallen into contraction territory and services activity declined for a third month running. EUR/USD has now fallen from 1.0205 to 1.0180 on the day:
With the kneejerk rally to the ECB decision yesterday failing to really contest the 50.0 Fib retracement level at 1.0283, this might just be as good as it gets for the euro. A weak set of German PMI readings will be the nail in the coffin surely for those expecting a recovery rally towards 1.0400 before the Fed next week.