EUR/USD under pressure below 1.1600, focus on PMIs

• The pair appears depressed below the 1.1600 handle on Monday.
• The greenback manages to trade in session lows near 95.30.
• Final September’s PMIs next on tap in Euroland, ISM next in US docket.

The demand for the single currency remains subdued at the beginning of the week and is now taking EUR/USD to the 1.1590/80 band ahead of the opening bell in the Old Continent.

EUR/USD looks to data, Italy

Uncertainty around the Italian fiscal sector after the recently announced 2.4% budget deficit continues to weigh on investors’ sentiment today, keeping the shared currency under further pressure and forcing spot to post its fourth session with losses in a row.

Adding to the downbeat sentiment, Italy’s debt sustainability is now under the microscope and could trigger some revisions from credit-rating agencies.

On the other side of the equation, the greenback keeps the bid tone and is looking to consolidate the recent breakout of the 95.00 handle following the Fed’s move on rates and a pick up in US yields.

In the data space, final manufacturing PMIs for the month of September are due later in Euroland ahead of the US ISM Manufacturing index. Earlier in the morning, German Retail Sales contracted 0.1% during August, missing consensus.

EUR/USD levels to watch

At the moment, the pair is losing 0.09% at 1.1592 and a breakdown of 1.1567 (low Sep.28) would target 1.1526 (low Sep. 10) en route to 1.1508 (low May 29). On the flip side, the next up barrier aligns at 1.1815 (high Sep.24) seconded by 1.1853 (monthly high Jun.14) and finally 1.1942 (200-day SMA).