Investing.com - The dollar pulled back from one-and-a-half month highs against the slightly firmer euro on Monday as investors remained cautious ahead of the European Central Bank’s monthly meeting and the U.S. nonfarm payrolls report later in the week.
During U.S. morning trade, the euro recovered from six-week lows against the dollar, with EUR/USD edging up 0.16% to 1.3513, after falling as low as 1.3442 earlier.
The euro found support after data on Monday showed that the euro zone manufacturing purchasing managers index’ ticked up to 51.3 in October from a final reading of 51.1 in September, unchanged from a preliminary estimate.
The single currency looked likely to remain under pressure in the run-up the ECB’s monthly meeting on Thursday after data last week showing that euro zone inflation fell to a four year low in October sparked concerns that the bank may cut rates in order to safeguard the fragile economic recovery.
The dollar was steady close to two-week highs against the yen, with USD/JPY dipping 0.08% to trade at 98.61.
Demand for the dollar continued to be underpinned by expectations that the Federal Reserve could start to taper its stimulus program as soon as next month. The U.S. jobs report for October, due out Friday would help investors assess expectations for a possible reduction in Fed stimulus.
The dollar showed little reaction after a report on Monday showed that U.S. factory orders rose 1.7% from a month earlier in September, in line with expectations.
Elsewhere, the dollar was lower against the pound, with GBP/USD rising 0.16% to 1.5951.
Sterling moved higher after data showed that activity in the U.K. construction sector expanded at the fastest rate in six years in October.
The U.K. construction PMI rose to 59.4, the highest level since September 2007, from 58.9 in September. Economists had expected an unchanged reading.
The dollar also slid lower against the Swiss franc, with USD/CHF sliding 0.14% to 0.9108.
The greenback was lower against its Australian and New Zealand counterparts, with AUD/USD advancing 0.65% to 0.9496 and NZD/USD climbing 0.22% to 0.8277.
Australia’s dollar was higher after data released on Monday showed that retail sales in Australia rose 0.8% in September, beating expectations for a 0.4% increase.
The greenback slid lower against the Canadian dollar, with USD/CAD losing 0.14% to trade at 1.0407.
The U.S. dollar index, which tracks the performance of the greenback versus a basket of six other major currencies, was down 0.17% to 80.66.
During U.S. morning trade, the euro recovered from six-week lows against the dollar, with EUR/USD edging up 0.16% to 1.3513, after falling as low as 1.3442 earlier.
The euro found support after data on Monday showed that the euro zone manufacturing purchasing managers index’ ticked up to 51.3 in October from a final reading of 51.1 in September, unchanged from a preliminary estimate.
The single currency looked likely to remain under pressure in the run-up the ECB’s monthly meeting on Thursday after data last week showing that euro zone inflation fell to a four year low in October sparked concerns that the bank may cut rates in order to safeguard the fragile economic recovery.
The dollar was steady close to two-week highs against the yen, with USD/JPY dipping 0.08% to trade at 98.61.
Demand for the dollar continued to be underpinned by expectations that the Federal Reserve could start to taper its stimulus program as soon as next month. The U.S. jobs report for October, due out Friday would help investors assess expectations for a possible reduction in Fed stimulus.
The dollar showed little reaction after a report on Monday showed that U.S. factory orders rose 1.7% from a month earlier in September, in line with expectations.
Elsewhere, the dollar was lower against the pound, with GBP/USD rising 0.16% to 1.5951.
Sterling moved higher after data showed that activity in the U.K. construction sector expanded at the fastest rate in six years in October.
The U.K. construction PMI rose to 59.4, the highest level since September 2007, from 58.9 in September. Economists had expected an unchanged reading.
The dollar also slid lower against the Swiss franc, with USD/CHF sliding 0.14% to 0.9108.
The greenback was lower against its Australian and New Zealand counterparts, with AUD/USD advancing 0.65% to 0.9496 and NZD/USD climbing 0.22% to 0.8277.
Australia’s dollar was higher after data released on Monday showed that retail sales in Australia rose 0.8% in September, beating expectations for a 0.4% increase.
The greenback slid lower against the Canadian dollar, with USD/CAD losing 0.14% to trade at 1.0407.
The U.S. dollar index, which tracks the performance of the greenback versus a basket of six other major currencies, was down 0.17% to 80.66.