EUR/USD retreats back to the 1.1600 ahead of Lagarde’s speech

The EUR/USD pair has reversed part of recent gains and returned to 1.1600. Sellers returned to the market and forced EUR/USD to abandon the area of recent highs and refocus once again on the 1.1600 hereabouts.
After two successive daily pullbacks, the EUR/USD pair now trades on the defensive and hovers around the 1.1600 area, fading away at the same time Monday’s uptick to tops in the 1.1640 region.
The softer stance in the European currency follows three consecutive daily pullbacks, including the rejection from new 2021 highs around 94.50.
Meanwhile, the final German Manufacturing PMI came at 56.2 (from 60.8) and the EMU’s gauge receded to 56.4.
In the euro area, Producer Prices rose by 1.1% MoM in August and 13.4% over the last twelve months. Later in the session, Chairwoman Lagarde will speak in Frankfurt.