After the plunge below parity to its lowest levels in nearly twenty years, the euro looks set to consolidate below the key level amid a more dire outlook with little to no positives working in favour of the currency at the moment.
Looking ahead today, the preliminary August PMI data is likely to cement those expectations and any downside miss could see the euro decline accelerate much more quickly. So far today, the changes among major currencies are light but the dollar remains in charge after the developments since last week.
Besides the focus on PMI data and dollar sentiment, the risk mood will continue to be a key factor to watch as equities are being battered amid its latest retreat. The S&P 500 is being rejected strongly by its 200-day moving average and is now looking towards 4,100 and its 100-day moving average at 4,090 next.
All eyes will still be fixated on Fed chair Powell's speech in Jackson Hole later in the week though and that will be the key risk event that decides how we will get to the end of August trading next week.
0715 GMT - France August flash manufacturing, services, composite PMI
0730 GMT - Germany August flash manufacturing, services, composite PMI
0800 GMT - Eurozone August flash manufacturing, services, composite PMI
0830 GMT - UK August flash manufacturing, services, composite PMI
1000 GMT - UK August CBI trends total orders
That's all for the session ahead. I wish you all the best of days to come and good luck with your trading! Stay safe out there.
