Trial now

Coming up in the Asia-Pac session on Friday:


Returning Lower


Risk-On Ahead July Employment Report

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.
MNI London Bureau | +44 203-865-3809 |