Euro faces headwinds this week, emerging as one of the more subdued performers, with all eyes set on today's Eurozone PMI data. Its trajectory, when compared to Yen and Aussie, remains uncertain, as both showed minimal response to their respective PMI releases. Conversely, Dollar's movement, in anticipation of the PMI release, is expected to be constrained, with the market's primary focus shifting to Fed Chair Jerome Powell's upcoming speech at the Jackson Hole Symposium. Meanwhile, Canadian Dollar might witness some stirring due to release of its retail sales data. For the ongoing week, Yen sits at the bottom of the performance chart, trailed by Euro and then Dollar. Conversely, Australian Dollar is leading the pack, with the New Zealand Dollar and Swiss Franc closely following. Both Sterling and Canadian Dollar hold neutral positions. Remarkably, except for EUR/GBP, majority of major pairs and crosses are treading within the previous week's range. Zooming in on EUR/GBP, release of UK PMIs is anticipated to induce some movement. Immediate focus is now on 0.8502 support in the cross. Decisive break there will resume larger decline from 0.8977. Next target is 61.8% projection of 0.8874 to 0.8502 from 0.8667 at 0.8437. Downside breakout in EUR/GBP, especially with a simultaneous break of 0.9520 support in EUR/CHF, might intensify Euro's descent across the board. In Asia, at the time of writing, Nikkei is up 0.34%. Hong Kong HSI is up 0.91%. China Shanghai SSE is down -0.62%. Singapore Strait Times is up 0.36%. Japan 10-year JGB yield is up 0.007 at 0.679. Overnight, DOW dropped -0.51%. S&P 500 dropped -0.28%. NASDAQ rose 0.06%. 10-year yield dropped -0.014 to 4.328. |