Investing.com - The euro remained weaker against the dollar on Monday after data showing that the pace of economic growth in the euro zone was unchanged in the third quarter from the second, while the rate of inflation picked up only slightly in October.
EUR/USD was steady at 1.0955 following the release of the data, down 0.28% for the day.
Euro area gross domestic product expanded at an annual rate of 1.6% in the three months to September Eurostat said, matching second quarter growth and also in line with economists’ forecasts.
On a quarter-over-quarter basis, the euro zone economy expanded 0.3% in the three months to September, the same as in the second quarter.
A separate report showed that the annual rate of inflation in the single currency bloc rose by 0.5% in October, up slightly from 0.4% in September and also in line with forecasts.
Underlying inflation, which strips out food and fuel costs, rose 0.8% in October, matching expectations and the previous month’s increase.
The European Central Bank targets annual inflation of close to but just below 2.0%.
The ECB will hold its next monetary policy meeting on December 8 and may announce the extension of its asset purchase program which is currently scheduled to end in March 2017.
Demand for the dollar continued to be underpinned by expectations for a December interest rate hike by the Federal Reserve.
The U.S. dollar index, which measures the greenback’s strength against a trade-weighted basket of six major currencies, was up 0.2% to 98.51, holding below the almost nine-month high of 99.09 set last Tuesday, but still on track for a monthly gain.
The dollar weakened late Friday after the FBI said it would review more emails related to Hillary Clinton's private email use while she was secretary of state.
The report sparked fresh uncertainty over Mrs. Clinton’s election prospects ahead of the November 8 vote, amid fears over the implications of a victory for Republican candidate Donald Trump.
The dollar had been boosted earlier Friday after a stronger-than-forecast estimate of U.S. third quarter GDP supported the case for a December rate hike.
The euro was also weaker against the yen and sterling, with EUR/JPY dipping 0.12% to 115.02 and EUR/GBP falling 0.26% to 0.8992.
The pound remained on the defensive as speculation over whether Bank of England Governor Mark Carney will serve out his full term continued.
Carney has faced criticism following his pre-referendum warnings that a Brexit vote could push the U.K. economy into an immediate recession.