No hasty Euro sales on weaker-than-expected PMIs – Commerzbank

Everyone is waiting for Jackson Hole this week, but it is still worth taking a look at the data from the Eurozone today, as the purchasing managers’ indices for August are published. Antje Praefcke, FX Analyst at Commerzbank, analyzes EUR outlook ahead of these events.

Lagarde is likely to leave all doors open for the time being anyway

The market might scrutinize ECB President Christine Lagarde’s statements on Friday, when she is expected to speak in Jackson Hole, to see if she might sound a bit more dovish, whereupon the Euro could come under downward pressure.

But I would be cautious about over-interpreting her statements, and prefer to wait for the new inflation figures for August, which will be published on Aug. 31. Moreover, at the end of the interest rate cycle and shortly before the next interest rate meeting in September, Lagarde is likely to leave all doors open for the time being anyway. In this respect, I would not want to rush selling the Euro today on weaker-than-expected indices.