FXStreet (Córdoba) - It has been a quiet European session so far, with majors taking a breather following yesterday’s USD rally triggered by more hawkish than expected Fed minutes. European currencies consolidated at multi-month lows versus the greenback with regional data having no-lasting impact on the EUR and the GBP.
The EUR/USD bounced from a fresh 11-month low of 1.3242 and erased intraday losses following mixed PMI data from France, Germany and the Eurozone as a whole. However, the recovery was quite timid, stalling ahead of 1.3280.
The GBP/USD attempted to recover from a low of 1.6563 but disappointing UK retail sales kept the Cable near lows. Meanwhile, the USD/JPY is consolidating just below 104.00.
Commodity currencies were under broad pressure, although the AUD/USD managed to shrug-off soft Chinese PMI and trimmed intraday losses to trade around 0.9280. The NZD/USD was flat around 0.8375 while the USD/CAD steadied after reaching a 3-month high of 1.0985.
Elsewhere, stocks were broadly up in Europe and US futures pointed for a higher opening. US data scheduled includes initial weekly jobless claims, existing home sales and the Philly Fed manufacturing index. However, market focus now turns to Friday’s Fed Chair, Janet Yellen, speech at Jackson Hole.
Main Headlines in Europe:
No signs of a possible EUR correction
France Markit Services PMI came in at 51.1, above expectations (50.3) in August
France Markit Manufacturing PMI came in at 46.5 in August
Gold falls to 2-month lows
Germany: Flash PMI Manufacturing slides to 52 in August
What lies ahead of the EUR/USD today? – Commerzbank and UOB Group
EMU: Flash PMI Manufacturing falls more than expected in August
European stocks stay up after mixed PMIs
USD benefited by FOMC minutes – Danske Bank