EUR circles YTD lows as PMIs crumble -The.....>

FOREX: EUR circles YTD lows as PMIs crumble

-The single currency shed around 50 pips against the greenback on the back of a

particularly woeful set of PMI numbers from Germany and France, with broad-based

weakness across both services and manufacturing sectors. The moves bring YTD and

multi-year lows at $1.0927 back in range, with a break below there opening

levels not seen since May 2017.

-The moves have helped harbour a modest bidtone in safe haven currencies,

keeping JPY and CHF at the top of the table to begin the week. USD/JPY now

trades in close proximity to 50-dma support at 107.10, which looks more likely

given the break in the EUR/JPY September uptrend this morning.

-Scandi FX remains offered and is even underperforming the EUR, with

disinflationary pressures in the Eurozone seen feeding through well into both

the Norwegian and Swedish economies.

-Data points are few and far between Monday, with US Markit PMI numbers the

highlight. Speeches from BoE's Tenreyro, ECB's Draghi & Lane and Fed's Williams,

Daly & Bullard will likely garner more focus.