By XE Market Analysis
Mostly narrow ranges have prevailed, which is likely to remain the case in the absence of North American markets. The main exception was Sterling, which dove over 0.5% on the double whammy of an unexpectedly weak August manufacturing PMI report out of the UK and after the EU's chief Brexit negotiator Barnier said that the British government's proposals for a new trade deal is a no-go. Cable posted a three-session low at 1.2877 while EUR-GBP clocked a three-session high at 0.9012. EUR-USD has been directionally challenged, holding a narrow range around the 1.1600 level, near net unchanged from Friday's closing level. USD-JPY saw moderately weakness during the Asian session before drifting back higher during the European AM session, remaining near the 111.00 level throughout. AUD-JPY printed a new 20-month after China's Caixin manufacturing PMI fell to a 14-month low and other PMI surveys in Asia highlighted weakening export demand, which hit a nerve given prevailing concerns for the Sino-U.S. trade war to continue to escalate.
