Investing.com - The U.S. dollar was broadly higher against its major counterparts on Monday, as weak economic data from the euro zone added to ongoing concerns over the handling of the region’s sovereign debt crisis.
During European morning trade, the dollar was higher against the euro, with EUR/USD shedding 0.47% to hit 1.3155.
Preliminary data showed that manufacturing activity in the euro zone deteriorated in April, growing at the slowest pace since June 2009.
In a report, Markit said that its preliminary manufacturing purchasing managers’ index fell to a 46.0 in April from a final reading of 47.7 in March. Analysts had expected the index to ease up to 48.2 in April.
The report also showed that service sector activity in the euro zone declined to the lowest level in five months in April.
The preliminary services purchasing managers’ index dipped to 47.9 from 49.2 in March. Analysts had expected the index to ease up to 49.4.
The data came after a report showing that manufacturing activity in Germany slowed to the lowest level in almost three years in April, adding to concerns over the economic outlook of the euro zone’s largest economy.
The weak reports overshadowed news on Friday that the Group of 20 leading economies agreed to boost the International Monetary Fund’s lending capacity by USD430 billion, to help shield the global economy from the debt crisis roiling the euro zone.
Meanwhile, sentiment also came under pressure amid uncertainty over the result of France’s presidential election, after President Sarkozy performed poorly against challenger Francois Hollande in the first round of the vote.
The greenback was steady against the pound, with GBP/USD slipping 0.14% to hit 1.6100.
Elsewhere, the greenback was lower against the yen but higher against the Swiss franc, with USD/JPY dropping 0.52% to hit 81.09 and USD/CHF adding 0.50% to hit 0.9135.
The greenback was broadly higher against its Canadian, Australian and New Zealand counterparts, with USD/CAD rising 0.32% to hit 0.9954, AUD/USD retreating 0.62% to hit 1.0314 and NZD/USD dropping 0.71% to hit 0.8129.
The export-related currencies weakened amid signs of a slowdown in Chinese manufacturing activity for the sixth consecutive month.
A preliminary report from Markit showed earlier that its manufacturing purchasing managers’ index for China hit 49.1 in April following a reading at 48.3 the previous month.
Earlier in the day, official data showed that producer price inflation in Australia fell unexpectedly in the first quarter, edging down 0.3% after a 0.3% rise the previous quarter. Analysts had expected producer price inflation to rise 0.5% in the first quarter.
The data added to expectations for a rate cut by the Reserve Bank of Australia at its policy meeting this week.
The dollar index, which tracks the performance of the greenback versus a basket of six other major currencies, was up 0.27% at 79.49.
During European morning trade, the dollar was higher against the euro, with EUR/USD shedding 0.47% to hit 1.3155.
Preliminary data showed that manufacturing activity in the euro zone deteriorated in April, growing at the slowest pace since June 2009.
In a report, Markit said that its preliminary manufacturing purchasing managers’ index fell to a 46.0 in April from a final reading of 47.7 in March. Analysts had expected the index to ease up to 48.2 in April.
The report also showed that service sector activity in the euro zone declined to the lowest level in five months in April.
The preliminary services purchasing managers’ index dipped to 47.9 from 49.2 in March. Analysts had expected the index to ease up to 49.4.
The data came after a report showing that manufacturing activity in Germany slowed to the lowest level in almost three years in April, adding to concerns over the economic outlook of the euro zone’s largest economy.
The weak reports overshadowed news on Friday that the Group of 20 leading economies agreed to boost the International Monetary Fund’s lending capacity by USD430 billion, to help shield the global economy from the debt crisis roiling the euro zone.
Meanwhile, sentiment also came under pressure amid uncertainty over the result of France’s presidential election, after President Sarkozy performed poorly against challenger Francois Hollande in the first round of the vote.
The greenback was steady against the pound, with GBP/USD slipping 0.14% to hit 1.6100.
Elsewhere, the greenback was lower against the yen but higher against the Swiss franc, with USD/JPY dropping 0.52% to hit 81.09 and USD/CHF adding 0.50% to hit 0.9135.
The greenback was broadly higher against its Canadian, Australian and New Zealand counterparts, with USD/CAD rising 0.32% to hit 0.9954, AUD/USD retreating 0.62% to hit 1.0314 and NZD/USD dropping 0.71% to hit 0.8129.
The export-related currencies weakened amid signs of a slowdown in Chinese manufacturing activity for the sixth consecutive month.
A preliminary report from Markit showed earlier that its manufacturing purchasing managers’ index for China hit 49.1 in April following a reading at 48.3 the previous month.
Earlier in the day, official data showed that producer price inflation in Australia fell unexpectedly in the first quarter, edging down 0.3% after a 0.3% rise the previous quarter. Analysts had expected producer price inflation to rise 0.5% in the first quarter.
The data added to expectations for a rate cut by the Reserve Bank of Australia at its policy meeting this week.
The dollar index, which tracks the performance of the greenback versus a basket of six other major currencies, was up 0.27% at 79.49.