• EUR/USD declined in one of its worst days in H2 2024.
• EU PMI figures broadly came in below expectations, while US PMIs also printed lower.
• Tuesday is set to be a quiet day on the Fiber front.

EUR/USD trimmed recent bullish momentum, declining by one-half of one percent on Monday. Fiber declined in one of its worst trading days in the second half of the year after pan-EU Purchasing Managers Index (PMI) figures broadly missed expectations, while the US PMI data print faired only slightly better.

Tuesday will be a quiet affair on the EUR/USD front; little data is expected from either side of the Atlantic, though Federal Reserve (Fed) Governor Michelle Bowman is expected to make an appearance. 

Despite a broad-market weakening in the Greenback following last week’s surprise double rate cut from the Fed, souring market sentiment on behalf of the Euro is keeping EUR/USD under wraps. 

September’s S&P US Manufacturing PMI declined to 47.0 MoM, falling to its lowest level since July of 2023 as the US manufacturing sector sees a continued gloomy outlook on business activity. On the other hand, the S&P US Services PMI eased to 55.4 in September, down from August’s 55.7 but beating the expected print of 55.2.

Fed policymaker and Chicago Fed President Austan Goolsbee hit markets with cooling comments early Monday, noting that much further movement on rates from the Fed could be necessary. The Fed official highlighted that the Fed may need to shoot much lower on policy rates in order to keep business lending conditions sufficiently liquid enough to keep the US business landscape keel-side down as record tightness in the US labor market drains away.