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Dollar remains moderately lower in quiet trade

Published 11/02/2015, 07:27 AM
© Reuters.  Dollar holds losses vs. other majors ahead of U.S. data
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Investing.com - The dollar remained moderately lower against the other major currencies in quiet trade on Monday, as investors eyed the release of U.S. manufacturing data later in the day amid fresh concerns over the strength of the U.S. economy.

The dollar was steady against the yen, with USD/JPY at 120.62.

The greenback remained under pressure after the University of Michigan said on Friday that its consumer sentiment index fell to 90.0 this month from 92.1 in September, compared to expectations for a rise to 92.5.

In addition, the U.S. Bureau of Economic Analysis said that personal spending rose 0.1% last month, disappointing expectations for a 0.2% rise and after a 0.4% increase in August.

The data added to concerns over the strength of the economy after the Commerce Department said last Thursday that U.S. gross domestic product grew at an annual rate of 1.5% in the three months to September, missing expectations for growth of 1.6%.

EUR/USD added 0.17% to trade at 1.1022.

Data on Monday showed that growth in the euro zone's manufacturing sector ticked higher in October. The final reading of the euro zone manufacturing purchasing managers' index rose to 52.3 from 52.0 in September.

The French factory sector posted modest growth with the manufacturing PMI coming in at 50.6 but growth in Germany’s factory sector slid to a three-month low, with the factory PMI dipping to 52.1 from 52.3 in September.

Elsewhere, the dollar was lower against the pound and the Swiss franc, with GBP/USD up 0.23% at 1.5462 and with USD/CHF slipping 0.14% to 0.9862.

Sterling was boosted after Markit said that its U.K. manufacturing PMI jumped to a 16-month high of 55.5 last month from 51.8 in September. Economists had expected the index to tick down to 51.3.

The Australian dollar held steady, with AUD/USD at 0.7133, while NZD/USD dropped 0.53% to 0.6744.

Markets were jittery after data on Sunday showed that China's official manufacturing PMI remained in contraction territory at 49.8 this month, unchanged from September and disappointing expectations for a rise to 50.0

Earlier Monday, data showed that China's Caixin manufacturing PMI rose to 48.3 in October from 47.2 the previous month, beating expectations for an uptick 47.5.

Meanwhile, USD/CAD edged up 0.15% to trade at 1.3101.

The U.S. dollar index, which measures the greenback’s strength against a trade-weighted basket of six major currencies, was down 0.11% at 96.89.

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