USD Up On EU Energy Concerns

The USD remains on the front foot in the first part of trading today. The DXY has breached 110.00, although EUR/USD is holding above 0.9900 support for now (last 0.9915/20). EU stock futures have fallen 3% today, reflecting catch up with moves post Friday's close.

• USD/JPY dipped to 140.00 in early trade, but we are now back at 140.40. The PMI services and composite readings were revised slightly higher for August (49.5 versus 49.2 for services). Aiding the USD/JPY turnaround has been a recovery in US equity futures, back to flat after opening in the red.
• PMI revisions were also nudged higher for Australia, back to 50.2 for services, against an initial estimate of 49.6. Still to come is the Melbourne inflation gauge, ANZ job ads and Q2 company profits and inventories.
• AUD/USD fell towards 0.6775 early but is now back at 0.6790/95.
• GBP/USD continues to track lower, down a further 0.20% so far to 1.1480/85
• NZD/USD is back at 0.6090, with earlier dips sub 0.6080 supported. Q2 building work was better than expected at +2.6%, versus a revised +1.1% gain in Q1 (initially reported as +3.2%).
• Also coming up is the Caixin services PMI in China. The market forecast is 54.0 versus 55.5 previously.