Weaker than forecast euro zone data sends euro lower
Markets await Nvidia results, Powell39;s Jackson Hole speech
Japanese yields hit new high, yen still in intervention zone
U.S. Treasury yields continue pulling back from 16yr highs

LONDON, Aug 23 Reuters Weak European economic data sent the euro lower and sparked a bounce in bond and share markets on Wednesday, as investors also awaited results from tech darling Nvidia later to see if the sector39;s lofty valuations still look justified.

The euro fell to a more than twomonth low of just above 1.08 against the dollar and a 12month low against the pound after survey data showed German and euro area business activity slumped in August.

It was the fastest contraction in German business activity in over three years and had traders scurrying to firm up bets that the European Central Bank could now pause what has been a recordbreaking run of interest rate hikes.

That view that borrowing costs may finally be cresting helped lift the STOXX 600 European share index as much as 0.5 and pushed Germany39;s 10year government yield, the euro area benchmark, down to 2.546, its lowest since Aug. 10.

The PMI suggests that it39;s back to the presummer narrative of lower rates, said Piet Christiansen, chief analyst at Danske Bank.

Christiansen added that euro zone inflation data due next week would still be key to the ECB39;s decision.

There39;s many indicators that suggest that we could have had the last hike but if you just…