The US dollar is softer near the 99 level. Concerns about the fiscal outlook, uncertainty around Fed policy, and plans to double long-end Treasury buybacks to 4 billion dollars per operation are weighing on sentiment.
The euro is firmer after Eurozone manufacturing PMI reached 52.8, although weak German and French services data limit the upside.
Sterling is mixed: UK services remain resilient, but July retail sales fell 0.5% month-on-month.
The Canadian dollar is supported by stronger-than-expected retail sales, which rose 0.6% in June versus 0.4% expected.
The Australian dollar is in focus ahead of Tuesday’s RBA minutes, which may clarify the hike-versus-hold debate. One currency-strength update favours buying AUD and NZD against selected currencies.
Main risk this week: Jackson Hole and any change in Fed-rate
