EUR/USD remains on the defensive below 1.0850 ahead of ECB’s Lagarde speech, US GDP data

• EUR/USD weakens near 1.0835 in Wednesday’s early Asian session. 
• ECB’s Guindos hinted at a possible interest rate cut in September.
• US S&P Global Manufacturing PMI dropped to 49.5; Services PMI improved to 56 in July. 

The EUR/USD pair trades in negative territory for the third consecutive day around 1.0835 during the Asian session on Thursday. The major pair adds to the previous day’s losses amid a downbeat view of the Eurozone’s economic outlook and rising expectation that the European Central Bank (ECB) would cut more rates in September. 

Earlier this week, ECB vice president Luis de Guindos hinted at a possible interest rate cut in September as the central bank will have more information to reassess the monetary policy situation. The ECB President Christine Lagarde said last week after holding policy rates that the rate cuts in September were “wide open” amid easing inflationary pressures. The further rate cuts expectation from the ECB is likely to weigh on the Euro (EUR) in the near term.