ForexLive European FX news wrap: Euro holds below parity

<p>Headlines:</p><ul><li><a target=“_blank“ href=““>Europe PMI takeaway: It could have been worse</a></li><li><a target=“_blank“ href=““>EUR/USD continues to slug along below parity</a></li><li><a target=“_blank“ href=““>Eurozone August flash services PMI 50.2 vs 50.5 expected</a></li><li><a target=“_blank“ href=““>Germany August flash manufacturing PMI 49.8 vs 48.2 expected</a></li><li><a target=“_blank“ href=““>France August flash services PMI 51.0 vs 53.0 expected</a></li><li><a target=“_blank“ href=““>UK August flash services PMI 52.5 vs 52.0 expected</a></li></ul><p>Markets:</p><ul><li>CAD leads, CHF lags on the day</li><li>European equities slightly lower; S&P 500 futures up 0.1%</li><li>US 10-year yields down 0.3 bps to 3.015%</li><li>Gold up 0.1% to $1,738.08</li><li>WTI crude up 1.8% to $91.98</li><li>Bitcoin up 1.6% to $21,457</li></ul><p style=““ class=“text-align-justify“>The euro continues to keep softer in the new week, with the latest PMI readings for August helping to see the single currency sustain below parity against the dollar. The were some slightly better readings than estimated but overall, it still points to an added slowdown and contraction in Europe ahead of the winter months.</p><p style=““ class=“text-align-justify“>In the case of the euro area, a contraction in Q3 is a given now while the UK is set to see economic conditions stagnate.</p><p style=““ class=“text-align-justify“>EUR/USD was slightly softer initially as risk tones were also on the defensive. The pair was down to 0.9900 before bouncing back up to 0.9930 and then touching a high of 0.9950 before retreating back slightly lower now to 0.9920-30 levels.</p><p style=““ class=“text-align-justify“>GBP/USD also saw similar price action as the dollar swung around a bit amid the shift in the risk mood, with US futures turning a 0.5% drop to be up 0.1% currently. Cable was down to a low of 1.1718 before holding near flat levels now at 1.1765.</p><p style=““ class=“text-align-justify“>Elsewhere, commodity currencies are seen steadier though the aussie did slip to a one-month low of 0.6857 before keeping near flat now at 0.6875 on the day.</p><p style=““ class=“text-align-justify“>Risk tones and dollar sentiment will continue to dictate proceedings but all else being equal, the path of least resistance is still for the dollar to inch higher (or at least keep in a favourable position) given the technicals for the time being.</p>

This article was written by Justin Low at

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