Euro under pressure amid bad news from France and Germany

 Strong level 1.0805

The euro and eurozone government bond yields tumbled on Friday after economic data showed French business activity fell in June for the first time in five months.

Borrowing costs were already declining as markets failed to price the European Central Bank's deposit rate peak above 4% due to concerns about the economic impact of higher rates.

French 2-year FR2YT=RR yields fell 12 basis points on the day to 3.233%, while benchmark German 2-year DE2YT=RR bonds, the most sensitive to rate expectations, fell 8 basis points to 3. 19% after a brief rise to 3.282%. , the highest since March 10.

S&P Global's HCOB Express Purchasing Managers' Index (PMI) for France's services sector fell to 48.0, its lowest level since the start of the year from 52.5 in May.