PMI day returns to Europe

Comic 22-08

Good day, everyone! Hope you're all doing well as we look to get things going in the session ahead. The back and forth action in risk this week continues into the new day with the yen gaining some ground ahead of European trading.

Treasury yields are holding weaker on the day - 10-year yields down 1.5 bps to 1.574% - while equities are tepid awaiting more clarity from the Fed later this week. Asian equities are holding a tad weaker while US futures displaying similar sentiment on the session so far.

Meanwhile, the aussie and kiwi are holding a tad weaker amid more cautious risk sentiment as well as a weaker yuan to boot. State-owned banks are reportedly stepping in to manage the decline in the yuan though.

Overnight, the July FOMC meeting minutes failed to live up to the hype as expected so continue to expect Jackson Hole to be the key focus of markets in judging whether or not the Fed will provide any clear hints of what to expect in September.

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

The key focus for the euro this week. Expectations are for economic activity to weaken slightly in August but any surprising drop will no doubt trigger more recession fears - particularly in Germany - and potentially drag the euro lower. Meanwhile, any major unexpected bounce will provide some near-term relief for the single currency at least.

1000 GMT - UK August CBI retailing reported sales

Prior release can be found here. The readings here are an indicator of short-term trends in the retail and wholesale sector of the UK economy. A minor data point.

1130 GMT - ECB releases account of its July monetary policy meeting

The July meeting decision can be found here. Much like the ECB minutes in the past, the release here shouldn't provide us with anything new that we don't already know from Draghi's press conference at the time and remarks by ECB members since then.

That's all for the session ahead. I wish you all the best of days ahead and good luck with your trading!