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Forex - Dollar pares gains as euro advances on PMI data

Published 05/02/2011, 08:07 AM
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Investing.com – The U.S. dollar pared gains against its major counterparts in thin holiday trade on Monday, after an initial rally following news of Al Qaeda leader Osama Bin Laden’s death while the euro advanced, after better-than-expected euro-zone PMI data.

During European afternoon trade, the greenback was lower against the euro, with EUR/USD rising 0.22% to hit 1.4839.

Earlier in the day, a report showed that manufacturing activity in the euro zone expanded at the second-fastest rate since August 2000 last month.

The final Markit Manufacturing Purchasing Managers' Index rose to 58 in April from 57.5 in March, indicating that factory output rose at a faster rate than in the previous month.

But the greenback remained slightly higher against the pound, with GBP/USD slipping 0.14% to hit 1.6686.

In addition, the greenback was up against the yen and the Swiss franc with USD/JPY gaining 0.27% to hit 81.41 and USD/CHF easing up 0.12% to hit 0.8663.

Earlier in the day, official data showed that Swiss retail sales slipped unexpectedly in March, while a separate report showed that manufacturing activity in Switzerland unexpectedly declined in April.

Elsewhere, the greenback was up against its Canadian, Australian and New Zealand counterparts, with USD/CAD climbing 0.45% to hit 0.9491, AUD/USD slipping 0.19% to hit 1.0950 and NZD/USD shedding 0.23% to hit 0.8078.

The dollar index, which tracks the performance of the greenback versus a basket of six other major currencies, dipped 0.05%.

Later in the day, the U.S. Institute for Supply Management was to publish its manufacturing PMI.

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