The euro fell sharply to its lowest in a week after PMI data out of France and Germany missed estimates.
EUR/USD down as much as 0.9% to 1.0854, set for the biggest drop since mid-March on closing basis; momentum desks chased the market lower after the break of the 1.09 handle, while stops were filled below 1.0880, a Europe-based trader says.
The euro is now down 0.6% on a weekly basis; more stops seen below 1.0850: trader.
Money markets priced ECB peak rate below 4% as German 10-year Bond yield fell 13bps to 2.36%, lowest since June 13.
Two-year German yield falls as much as 12bps to 3.10%.
The Bloomberg Dollar Spot Index is set to snap a run of three consecutive weekly declines, up 0.5% on the day to tough strongest in a week ,10-year Treasury yields down five basis points to 3.74%.
The dollar is up versus all G-10 peers except the yen, as commodity currencies under strong pressure.
USD/JPY reverses gains, drops 0.2% to 142.82; bidding interest seen at 142.40-60, another Europe-based trader says.
AUD/USD retreats 1% to 0.6687 low; exporters' purchases of the Aussie near 0.6730 were offset by stop-loss sales through the June 12 low of 0.6727, according to an Asia-based FX trader.
Source : Bloomberg
