Euro at daily highs amid mixed Euro zone PMI data

Final European PMI readings came out mostly better-than-expected, but investors rather ignored the numbers.

The French services PMI for August came out at 50.6 and sharply worsened from July's 52.0, while the same gauge for Germany improved from 53.8 to 54.9, Markit advised on Thursday. Moreover, Italy, Spain and euro zone in total delivered better-than-expected results for the reported period.

Later in the day, the European Central Bank (ECB) monetary policy decision is due, with the central bank expected to leave all three key benchmark rates unchanged. However, the presser will attract some attention as bank President Mario Draghi is likely to comment on the previous volatility and the current exchange rate of a stronger euro against most of the majors.

From the US dollar point of view, the ISM non-manufacturing gauge for August is due and should soften from July's 60.3 to 58.2. The numbers should not bring any volatility as traders are already pricing out the September rate hike, while the biggest focus remains on Friday's payrolls report.