EUR/USD wrap up ahead of nonfarm payrolls showdown - FXStreet

Valeria Bednarik, chief analyst at FXStreet explained that the greenback had a sour start for September, hit by  quite a disappointing US ISM manufacturing report for August, as the index fell into contraction territory, down to 49.4 from 52.6 in July, the lowest reading since January.

Key Quotes:

"The employment component fell to 48.3 from 49.4, the worst reading in over 4 months, toning down hopes of a near-term FED rate hike. The final Markit manufacturing PMI for the same month came in at 52.0, below the 52.1 expected.

The EUR/USD recovered from the 1.1130 region, advancing up to 1.1204 in the US afternoon, and holing around this last by the end of the day, as the market entered wait-and-see mode ahead of the release of the US Nonfarm Payroll report this Friday.

The market is expected the US economy to have added around 180K new jobs in August, slightly below this year average of 186K.

Earlier in the day, the EU final August manufacturing PMI was also a miss, down to 51.7 from 51.8, dragged lower by downward revisions in Italian and French figures. Germany on the other hand, keeps growing steadily, with the manufacturing index matching expectations at 53.6."