USD

The US dollar suffered a sharp selloff against the yen and the euro, mostly due to the bloodbath in the equity market. 

Apart from that, lower odds of a Fed rate hike in September are also leading investors to close off their long dollar holdings. Data from the US was weaker than expected, with the flash manufacturing PMI falling from 53.8 to 52.9 instead of ticking up to 53.9. There are no reports due from the US today but FOMC member Lockhart is set to testify.

EUR

The euro managed to advance against most of its forex rivals despite the slump in European equity markets last week. News that Greece finally got its hands on the third set of bailout funds and paid its obligations to the ECB was able to spur a relief rally for the shared currency while PMI readings from the top economies showed resilience. Most of the manufacturing and services PMIs from Germany and France came in line with expectations and showed small improvements. There are no reports due from the euro zone today.

GBP

The pound was also able to rake in some gains against its rivals, except for the Japanese yen. Data from the UK was closely in line with expectations, as the public sector borrowing report showed a surplus instead of a deficit. Apart from that, rate hike expectations from the BOE are still in play, providing the pound support against the commodity currencies. No reports are due from the UK today.

CHF

The franc took advantage of dollar weakness last Friday and was also able to make profits in the name of risk aversion. There have been no reports released from Switzerland then, but the franc also got a boost from euro zone PMI readings. No reports are due from the Swiss economy today.

JPY

The yen was a big winner last Friday, thanks to the surge in risk aversion spurred by the equity market selloff. There have been no major reports released from Japan, but traders flocked to the lower-yielding currency as Asian markets tumbled. There are still no reports due from Japan today.

Commodity Currencies (AUD, NZD, CAD)

The Aussie and Kiwi managed to stem their losses against the dollar but gave up a lot of ground to most of their major counterparts. Oil prices fell below the $40/barrel level, triggering further losses for the Canadian dollar. Retail sales figures from Canada came in better than expected while the CPI readings were in line with consensus.

By Kate Curtis from Trader’s Way