Forexpros – The U.S. dollar was mixed against its major counterparts on Monday, after a flurry of worse-than-expected euro zone data overshadowed optimism over a deal to contain the debt crisis in the region.
During European morning trade, the greenback was up against the euro, with EUR/USD shedding 0.30% to hit 1.3852.
Earlier in the day, preliminary data showed that manufacturing activity in the euro zone slumped to a 27-month low in October. Service sector output in the single-currency bloc also declined to a 27-month low, adding to fears that the euro zone could be slipping into a recession.
Over the weekend, European leaders seemed to move closer to a plan to recapitalize banks and enhance the euro zone’s bailout fund, but divisions remained over restructuring Greek debt.
The greenback was also up against the pound, with GBP/USD easing down 0.11% to hit 1.5932.
Later Monday, the U.K. parliament was to debate calls for a referendum on Britain’s membership of the European Union, in what was being seen as a test of Prime Minister David Cameron’s authority.
Meanwhile, the greenback was lower against the yen but higher against the Swiss franc with USD/JPY slipping 0.15% to hit 76.17 and USD/CHF rising 0.34% to hit 0.8852.
Earlier Monday, Japan’s Finance Minister Jun Azumi reiterated warnings against speculators pushing the yen too high, after the currency surged to a record high against the dollar on Friday, saying Tokyo would take “decisive” steps in the foreign exchange market if necessary.
The greenback was up against its Canadian counterpart but was down against its Australian and New Zealand cousins, with USD/CAD easing up 0.04% to hit 1.0070, AUD/USD inching 0.01% higher to hit 1.0378 and NZD/USD rising 0.05% to hit 0.8039.
Official data released earlier showed that Australian producer price inflation fell more-than-expected in the third quarter, adding to speculation that the country’s central bank could cut interest rates later this week.
The dollar index, which tracks the performance of the greenback versus a basket of six other major currencies, was up 0.15% to hit 76.64.
Also Monday, a preliminary report showed that the Chinese HSBC manufacturing activity index rose to 51.1 in October, a five-month high, after contracting in the three previous months.
Forexpros
