EUR/USD: Recovery could be cut short if preliminary August PMIs disappoint – SocGen

EUR/USD battles higher for second day aided by Yuan defence. Economists at Société Générale analyze the pair’s outlook.

EUR/GBP has returned to the lower of the range

The recovery in EUR/USD to over 1.09, helped by intervention in USD/CNY, could be cut short on Wednesday if the preliminary August PMIs disappoint. 

EUR/GBP meanwhile has returned to the lower of the range. News of the lower-than-estimated UK budget shortfall inevitably rekindles speculation of a growth supportive tax cut in the Budget this autumn or next spring before the 2024 general election.