Euro, Pound Lower After PMI Data; Yen Reverses Drop
The euro came under pressure after PMI data from France and Germany with the pound following suit. The yen snapped a two-day decline.
EUR/USD down as much as 0.7% to 1.1083, heading for biggest daily drop since June; sells tops triggered below 1.1120 and 1.1100, a Europe-based trader says.
The euro area's private-sector economy shrank for the first time since March; composite PMI dropped to 48.9 in September from 51 the previous month while analysts had expected the measure to slip marginally to 50.5.
Two-year German yield falls below 10-year rate, disinverting curve; the gap between French and German benchmark yields climbed to the highest level since early August.
GBP/USD falls 0.5% to 1.3249, following the euro lower; it modestly pared the drop after data showed UK PMI services index fell to 52.8 from 53.7 in August, an 11th consecutive month of expansion.
EUR/GBP hits fresh cycle lows, down 0.2% to 0.8360; focus on 0.8340, the August 2022 low.
As bonds drop and e-minis erase gains, USD/JPY reverses course and slips 0.3% to 143.44, versus 144.46 day high.
The Bloomberg Dollar Spot Index is up a second day, rises 0.3%; US 10-year yield little changed at 3.74%.
AUD/USD flat at 0.6807, erases a 0.4% advance to 0.6836; Aussie rose on exporter demand ahead of month-end hedging obligations and leveraged fund buying amid China stimulus reports, according to Asia-based traders.
Source: Bloomberg
