Investing.com - The U.S. dollar was steady to lower against its major counterparts on Monday, as market sentiment slightly improved following relatively positive euro zone data, although concerns over the outlook for global economic growth remained.
During European morning trade, the dollar was lower against the euro, with EUR/USD rising 0.29% to 1.2895.
The euro erased earlier losses against the greenback after official data showed that the unemployment rate in the euro zone remained unchanged at 11.4% in August, in line with expectations.
The report came after revised data showed that the manufacturing purchasing managers' index for the single currency bloc improved to 46.1 in September from 46.0 the previous month.
Analysts had expected the index to remain unchanged in September.
In Spain, the manufacturing PMI rose to 44.6 in September, from 44.0 the previous month, while France's manufacturing PMI improved to 42.7 from 42.6.
Meanwhile, Italy saw its own manufacturing PMI rise to 45.7 in September, from 43.6 the previous month, while the country's unemployment rate remained unchanged at 10.7% in August, compared to expectations for a rise to 10.8%.
Investors remained cautious however, after the Spanish government said on Friday that the effort to clean up an ailing banking system will widen its budget gap and increase its debt load.
The comments came after the Bank of Spain announced that the recapitalization needs of Spanish banks amounted to EUR59.3 billion, broadly in line with market expectations.
Markets were also eyeing the outcome of Moody's rating agency's latest review of Spain's sovereign rating, which may see it downgraded to junk status.
The greenback was steady against the pound, with GBP/USD slipping 0.05% to 1.6159.
Data earlier showed that the U.K. manufacturing PMI fell more-than-expected in September, declining to 48.4 from 49.5 the previous month.
Separately, the Bank of England said that net lending to individuals fell by GBP0.4 billion in August, after a GBP0.6 billion rise the previous month, compared to expectations for an increase of GBP0.7 billion.
Elsewhere, the greenback was almost unchanged against the yen, with USD/JPY easing up 0.04% to hit 77.96, and lower against the Swiss franc, with USD/CHF falling 0.28% to trade at 0.9373.
Earlier in the day, the Bank of Japan said that the Tankan manufacturing index deteriorated to minus 3 in the second quarter, from a reading of minus 1 in the previous quarter, in line with expectations. Japan’s Tankan large non-manufacturing index remained unchanged at 8 in the second quarter, beating expectations for a fall to 6.
In addition, the greenback was steady to lower against its Canadian, Australian and New Zealand counterparts, with USD/CAD edging down 0.18% to 0.9818, AUD/USD dipping 0.01% to 1.0377 and NZD/USD easing up 0.05% to hit 0.8304.
The export-related currencies remained under pressure after data earlier showing that manufacturing activity in China contracted for the second consecutive month in September, falling to the lowest level since November 2011, sparked fresh concerns over the outlook for growth in the world's second largest economy.
The dollar index, which tracks the performance of the greenback versus a basket of six other major currencies, was down 0.17%, to trade at 79.85.
Later in the day, the U.S. was to publish a report by the Institute for Supply Management on manufacturing PMI, while Federal Reserve Chairman Ben Bernanke was due to speak at the Economic Club of Indiana, in Indianapolis.
During European morning trade, the dollar was lower against the euro, with EUR/USD rising 0.29% to 1.2895.
The euro erased earlier losses against the greenback after official data showed that the unemployment rate in the euro zone remained unchanged at 11.4% in August, in line with expectations.
The report came after revised data showed that the manufacturing purchasing managers' index for the single currency bloc improved to 46.1 in September from 46.0 the previous month.
Analysts had expected the index to remain unchanged in September.
In Spain, the manufacturing PMI rose to 44.6 in September, from 44.0 the previous month, while France's manufacturing PMI improved to 42.7 from 42.6.
Meanwhile, Italy saw its own manufacturing PMI rise to 45.7 in September, from 43.6 the previous month, while the country's unemployment rate remained unchanged at 10.7% in August, compared to expectations for a rise to 10.8%.
Investors remained cautious however, after the Spanish government said on Friday that the effort to clean up an ailing banking system will widen its budget gap and increase its debt load.
The comments came after the Bank of Spain announced that the recapitalization needs of Spanish banks amounted to EUR59.3 billion, broadly in line with market expectations.
Markets were also eyeing the outcome of Moody's rating agency's latest review of Spain's sovereign rating, which may see it downgraded to junk status.
The greenback was steady against the pound, with GBP/USD slipping 0.05% to 1.6159.
Data earlier showed that the U.K. manufacturing PMI fell more-than-expected in September, declining to 48.4 from 49.5 the previous month.
Separately, the Bank of England said that net lending to individuals fell by GBP0.4 billion in August, after a GBP0.6 billion rise the previous month, compared to expectations for an increase of GBP0.7 billion.
Elsewhere, the greenback was almost unchanged against the yen, with USD/JPY easing up 0.04% to hit 77.96, and lower against the Swiss franc, with USD/CHF falling 0.28% to trade at 0.9373.
Earlier in the day, the Bank of Japan said that the Tankan manufacturing index deteriorated to minus 3 in the second quarter, from a reading of minus 1 in the previous quarter, in line with expectations. Japan’s Tankan large non-manufacturing index remained unchanged at 8 in the second quarter, beating expectations for a fall to 6.
In addition, the greenback was steady to lower against its Canadian, Australian and New Zealand counterparts, with USD/CAD edging down 0.18% to 0.9818, AUD/USD dipping 0.01% to 1.0377 and NZD/USD easing up 0.05% to hit 0.8304.
The export-related currencies remained under pressure after data earlier showing that manufacturing activity in China contracted for the second consecutive month in September, falling to the lowest level since November 2011, sparked fresh concerns over the outlook for growth in the world's second largest economy.
The dollar index, which tracks the performance of the greenback versus a basket of six other major currencies, was down 0.17%, to trade at 79.85.
Later in the day, the U.S. was to publish a report by the Institute for Supply Management on manufacturing PMI, while Federal Reserve Chairman Ben Bernanke was due to speak at the Economic Club of Indiana, in Indianapolis.