All Eyes On 0.9900 In EUR/USD

As we approach the London/EU cross over, the main focus remains on if/when EUR/USD will break down through 0.9900. The market has kept the pair relatively close to this level throughout much of the session (last at 0.9905/0.9910). This support level has held on a number occasions in recent weeks, so could kick off a fresh round of USD strength if it gives way.

• The continued fallout from Russian suspending flows through the Nord Stream pipeline will remain the early focus point.
• From a data standpoint, London hours will be headlined by final services and composite PMI readings from across Europe and the UK, along with an OPEC+ meeting and the end of UK Tory Party leadership race also providing points of interest. US markets will be affected by the Labor Day holiday.
• GBP/USD is following EUR fairly closely. The pair was last at 1.1465/70, around -0.35% down from NY closing levels.
• AUD/USD is off the session lows, back up to 0.6785/90, as higher oil, and also iron ore (back to $97.35/tonne) has aided sentiment at the margin. AU data was a mixed bag. Note the focus shifts to tomorrow's RBA meeting, which is widely expected to deliver a 50bps hike.
• NZD/USD has followed A$ gyrations. Domestic data today has shifted market sentiment.
• USD/JPY dipped to 140.00 early, but is now back above 140.30. Higher US equity futures have helped.