EUR Forex Market Loses Further Ground

• USD Regains Strength With PMIs to Follow
• Pound Trades Well as New Leader Appointed
• Stock Futures Rise Early

The Euro forex market has continued to lose ground against the US Dollar ahead of a busy day with PMIs to be released later in the US. The Euro had traded closer to parity earlier in the week but has fallen back again. In the UK, the Pound Sterling traded well on the day that the leadership change in the country was formalized. Meanwhile, on Wall Street, stocks looked to snap a three-week losing street and started the day in positive form in the early hours. 

PMIs in Focus as US Dollar Gains

PMIs in the US are looking like the major market mover of the day for those trading forex and in other markets alike. The ISM Services PMI is predicted to remain high by analysts. While the Manufacturing PMIs previously sent the USD higher, the next moves will rely on Services PMIs and whether or not they can match projections. A ninth consecutive miss on the New Order component of the PMI though could hinder the currency.

At the same time, the Euro has failed to gain from any early morning caution and in fact, lost more ground early on in the European session before climbing back slightly. The common currency is enduring a torrid period against other major currencies and currently trades at right around $0.995 against the Dollar. The ongoing European energy crisis has also not helped matters.

GBP Enjoys New Leadership Bounce

The Pound has also been struggling for a protracted period of time in the face of a Dollar that has been almost impossible to break through with its safe-haven appeal. Sterling has an opportunity to turn the table with forex brokers today as the UK formalized its switch of leadership that had been coming for some weeks. 

New leader Liz Truss has been appointed Prime Minister by the Queen in a meeting this afternoon. This is shortly after former leader Boris Johnson completed his resignation which he announced some months earlier. The Pound gained above 1.16 against the Dollar amid hopes and plans from the new leader to enact government assistance with rapidly rising energy costs. 

Positive Early Moves on Wall Street

Stocks on the street were moving higher in the early hours as traders look to put an end to the three-week negative run that markets have endured. All three major indices in the US rose to start the day. The Dow Jones gained more than 150 points while the Nasdaq climbed 0.38%. The S&P 500 also progressed by just under 0.5% in the shortened week following Labor Day.

Traders will be hopeful that these positive moves continue through the opening bell and give the street something positive in a present climate which is extremely cautious and more prone to further selling than positive gains. All the major indices closed yesterday with similar losses.