Investing.com - The euro slid against the dollar on Monday after data revealed U.S. factories were gearing up for more work in October when markets were expecting them to ramp down.
In U.S. trading, EUR/USD was down 0.29% at 1.2489, up from a session low of 1.2441 and off a high of 1.2617.
The pair was likely to find support at 1.2429, the low from Aug. 22, 2012, and resistance at 1.2772, last Wednesday's high.
The Institute of Supply Management reported earlier that its manufacturing purchasing managers' index rose to 59.0 in October from 56.6 in September. Analysts had expected the index to decline to 56.2 in October, and the surprise uptick sparked fresh demand for the dollar by stoking sentiments that U.S. recovery continues to gain steam.
On Friday the Thomson Reuters/University of Michigan final consumer sentiment index rose to a seven-year high of 86.9 in October from 86.4 in September. Analysts had expected the index to remain unchanged.
Also on Friday, industry data showed that the Chicago purchasing managers' index rose to a three-and-a-half year high of 66.2 in October from 60.5 in September, confounding expectations for a reading of 60.0.
Elsewhere, the greenback continued to see support against most major currencies after the Bank of Japan said last week it was raising its monetary base target to an annual increase of ¥80 trillion from ¥60-70 trillion, a preemptive move to steer the economy away from deflationary decline while improving the chances of reaching inflation goals.
Further fueling greenback demand, a Japanese government panel overseeing the Government Pension Investment Fund approved plans on Friday for the fund to raise its holding of foreign stocks to 25% of its portfolio from 12%.
Meanwhile in the euro zone, the single currency came under pressure after the U.K.-based Markit Economics research group reported that its German manufacturing PMI fell to 51.4 in October from 51.8 the previous month, disappointing expectations for the index to remain unchanged.
Markit's manufacturing PMI for the entire euro zone ticked down to 50.6 this month from 50.7 in September. Analysts had expected the index to remain unchanged.
Elsewhere, the euro was down against the pound, with EUR/GBP down 0.19% at 0.7814, and up against the yen, with EUR/JPY up 1.14% at 142.29.
On Tuesday, investors will track euro zone whole price inflation figures as well as U.S. factory orders.