The EUR/USD pair's upward momentum was capped by the release of weaker-than-expected European Purchasing Managers' Index (PMI) figures. The Eurozone Manufacturing PMI slipped to 44.8 in September from 45.8 in August, falling short of the 45.6 forecast. Services PMI also dropped to 50.5 from August's 52.9, well below the expected 52.4. The HCOB Eurozone PMI Composite fell to an eight-month low of 48.9 in September, compared to the anticipated 50.6 and August's 51.0. Over in the US, September's S&P US Manufacturing PMI fell to 47.0, the lowest level since July 2024, while Services PMI eased slightly to 55.4, beating the 55.2 forecast. With Federal Reserve (Fed) Governor Michelle Bowman's upcoming statement and limited significant data, stability is expected for the EUR/USD pair in the near term.

GBP/USD Holds Steady Near 1.3350 Despite USD Weakness

The GBP/USD pair remains stable around 1.3350, near its 31-month high of 1.3359. On the Dollar front, the fierce market sentiment for additional rate cuts by the US Federal Reserve (Fed) in 2024, with Minneapolis Fed President Neel Kashkari's comments hinting at additional interest rate cuts in 2024, could inject volatility into the USD and affect the GBP/USD pair. In the UK, the preliminary Manufacturing PMI slipped to 51.5 in September from August's 52.5, missing the 52.3 forecast. Similarly, September's Services PMI declined to 52.8 from August's 53.7, below the expected 53.5. In the absence of economic data, the GBP/USD price dynamics will likely be driven by broader market sentiments.

EUR/GBP Weakens After Eurozone and UK PMI Data

EUR/GBP continues to lose momentum, slipping to 0.8350 following lower-than-expected Eurozone and UK PMI data. The UK Manufacturing PMI fell to 51.5 in September from August's 52.5, missing the 52.3 forecast. Similarly, September's Services PMI declined to 52.8 from August's 53.7, below the expected 53.5. On the Euro front, the HCOB Composite PMI dropped to an eight-month low of 48.9 in September from 51.0 in August. Services PMI hit a seven-month low at 50.5, While Manufacturing PMI declined to a nine-month low at 44.8, both falling short of expectations Germany's latest IFO Business Climate Index is expected to influence EUR/GBP further in the coming sessions.

USD/CAD Subdued, Awaiting BoC's Macklem Speech

USD/CAD edged lower to 1.3530, pressured by a softer USD following the Fed's recent policy moves. US Manufacturing PMI dropped to a 15-month low of 47.0 in September, while Services PMI eased to 55.4, beating expectations. Market focus now shifts to Bank of Canada (BoC) Governor Tiff Macklem's upcoming speech, which could provide further direction for the pair. As broader market sentiment hovers around the Fed, upcoming Canadian data will also be crucial in shaping USD/CAD's trajectory.

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