Recession fears swirl as PMIs point to........>

FOREX: Recession fears swirl as PMIs point to further slowdown in Europe

-A mixed bag for Eurozone services PMIs, as German, French and Eurozone figures

missed expectations (Italy was a minor beat). This did little to pressure the

single currency, however, as the dollar extended its retreat following the poor

data earlier in the week. This pattern was repeated in the UK, although markets

saw little response as focus remains on the viability (or lack thereof) of PM

Johnson's Brexit plans.

-Antipodean FX trades slightly better, with AUD and NZD outperforming on what

looks like little more than a bounce from recent lows.

-Weekly US jobless claims and August factory orders are due Thursday, but most

attention will likely be paid to the September ISM non-manufacturing read. The

employment component of the equivalent manufacturing figure earlier in the week

struck a multi-year low, so further evidence of softness ahead of Friday's

payrolls report will be carefully eyed. Speeches from Fed's Quarles, Mester,

Kaplan and Clarida are all on docket as well as ECB's Holzmann and BoE's

Tenreyro.