Session Recap: Euro weighed by PMIs

FXStreet (Córdoba) - It was a lively session for the Euro amid Eurozone PMIs releases as investors await the ECB meeting Thursday.

The EUR/USD was weighed by disappointing PMIs across the Eurozone and soft German inflation figures ahead of the Eurozone CPI tomorrow. The EUR/USD remains vulnerable near recent lows ahead of teh European Central Bank policy meeting Thursday.

Consensus is now calling for cuts of the 3 main rates. However, with much of this move already priced in, EUR bears might want to take profits if the bank does not surprise.

The EUR/USD fell to a low of 1.3593 before quickly bouncing back above 1.3600. Elsewhere, majors had a quiet session. The GBP/USD was steady around 1.6750 while the USD/JPY steadied around 102.00 after rising during Asian hours. The USD/CHF moved in tandem (although inversely) with the EUR/USD and reached a 5-day high of 0.8985 before pulling back.

Meanwhile, the Aussie is among the worst performers weighed by weak Aus building permits. The AUD/USD hit a 4-day low of 0.9242 before bouncing slightly.

During the New York session watch for US Markit manufacturing PMI, the ISM manufacturing index and construction spending.

Main Headlines in Europe:

What’s the sentiment around the EUR/USD today? – Commerzbank and OCBC Bank

European stocks open broadly higher

Fed's Evans: Inflation expected to remain below 2% for some time

Germany: PMI Manufacturing slides to 52.3 in May

EMU: PMI Manufacturing drops more than expected in May

China's growth seems to be stabilizing - BTMU

Lee Hardman, FX Analyst at the Bank of Tokyo Mitsubishi UFJ, sees today's PMI release a positive signal regarding Chinese economic growth prospects...
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Good week ahead for risk appetite - Societe Generale

Kit Juckes, Global Head of Currency Strategy at Societe Generale, expects a favourable context for riskier assets....
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