In addition, Friday’s data showed that China’s manufacturing activity contracted, within a six and a half years period, for the month of August at the fastest rate and boosted the fears for a bigger slowdown for the nation.
China’s manufacturing purchasing managers’ index preliminary reading dropped from 47.8 in July, to 47.1 for August the lowest level since 2009.
The latest weak data added fears to, whether the central bank in the U.S., next month, will be increasing interest rates and, the big negative impact it could have on the world’s economic growth.
The capital markets, since the Chinese yuan’s devaluation, went through a financial shock and therefore boosted the selloff in emerging market assets, commodities and equities.
Furthermore, the EUR/USD currency pair climbed to 1.1383, having recorded a rise of 1.28% and ending the week with gains. The euro, after euro zone’s growth in the private sector, unpredictably accelerated this month.
Euro area’s composite PMI preliminary reading, which covers the service and manufacturing sectors, climbed from 53.9 to 54.1, having by-passed analysts’ and economists’ expectations for a 53.8 figure.
Late on Friday, the USD/JPY pair performed its biggest daily drop over a period of six weeks, having traded at 122.03, approximately 1.12% lower.
The greenback was recently supported to rising, amid the expectations for an economic growth in the U.S. and the Federal Reserve likely increasing the borrowing costs as of September.
Moreover this week, investors and traders will be mostly focusing on the durable goods orders in the U.S. to be released on Wednesday, whilst on Monday Dennis Lockhard, Atlanta’s Fed President will be giving a speech. In addition, U.K’s and U.S.’s revised second quarter data on growth will also be closely monitored.