Soft UK Mfg PMI Pressures GBPUSD Through......>

FOREX: Soft UK Mfg PMI Pressures GBPUSD Through 1.29

- The heavy GBP tone spilled over into Europe after EU Barnier's weekend press

remarks that strongly opposed PM May's Chequers plan. Soft UK mfg PMI data

further pressured the pound through $1.2900 and currently remains bottom of the

G10 pile with losses of over 0.50%. EURGBP reclaimed the Gbp0.9000 level,

accelerating the move to Gbp0.9012.

- EURUSD was confined to a narrow $1.1588-1.1626 range, but did ease off its

best levels of the day following soft PMI readings across Europe. Italy with the

biggest miss, after falls in both output and new orders.

- AUD touched 20-month lows of $0.7166 overnight on the back of soft domestic

Retail Sales, but has since reclaimed the $0.7200 handle.

- USDTRY witnessed a sharp reversal off earlier traded highs to Try6.5230 after

the CBRT said it will take necessary actions to support price stability and

policy will be adjusted in the September meeting.

- USDJPY lacked direction and was held to a narrow 110.85-111.19 range.

- Volumes expected to remain light with the US & Canada observing Labor Day.