- EUR/USD is trading in negative territory below 0.9800.
- Haven flows continue to dominate financial markets ahead of the weekend.
The EUR/USD erased a small part of its daily losses after hitting its lowest level in two decades at 0.9737 earlier in the day. The pair was last seen at 0.9770, where it was down 0.65% on the day. For the week, EUR/USD has lost more than 2%.
Data from the euro zone and Germany showed that private sector business activity continued to contract at an increasing rate in early September. The S&P Global Composite PMI for the euro zone and Germany fell to 48.2 and 45.9, respectively.
Meanwhile, the dollar continued to benefit from safe haven flows and put additional downward pressure on EUR/USD. At press time, the Euro Stoxx 600 index was down 2% on the day and US stock index futures were down between 1.1% and 0.9%.
The preliminary US PMI report for September showed higher-than-expected numbers, especially the service sector indicator. The services sector index went from 43.7 in August to 49.2 in September, higher than the market consensus of 45.0
The manufacturing index came in at 51.8, more than the 51.1 expected. For its part, the integrated index went from 44.6 to 49.3, well above the consensus 44.7.
Finally, FOMC Chairman Jerome Powell will speak at the virtual “Fed Listens” event hosted by the Federal Reserve Bank of Dallas at 18:00 GMT.
Technical levels
Source: Fx Street
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