XE Market Analysis: Europe – Sep 01, 2015

The dollar has traded mostly softer. Fresh declines in Chinese and global stock markets and the associated rekindling in risk-off sentiment has served to erode Fed tightening expectations, which weighed on the greenback. EUR-USD lifted to the upper 1.12s from the low 1.12s, and USD-JPY sunk into five-day low territory, leaving a low of 120.32, which is 1.2% below yesterday’s closing level. Oil prices dipped, after rallying strongly over the three previous sessions. China data were discouraging.