Investing.com - The dollar remained broadly supported against
the other major currencies on in quiet trade Monday, still hovering
near one year highs against the euro as concerns over the conflict
in Ukraine and weak euro zone economic data continued to weigh on
the single currency.
Trade volumes were likely to remain limited on Monday, with
markets in the U.S. closed for the Labor Day holiday.
EUR/USD hit lows of 1.3119, the weakest level since September
6 2013 and was last trading at 1.3135.
Investors were continuing to monitor the situation in Ukraine
ahead of negotiations due to take place later in the day between
Ukrainian and Russian officials and pro-Russian separatists after
talks last week resulted in no major breakthrough.
Concerns that sanctions against Russia would act as a drag on
growth in the euro zone have weighed on the single currency in
Meanwhile, data on Monday confirmed that Germany's economy
contracted by 0.2% in the second quarter, in line with forecasts
and unchanged from a preliminary estimate.
Separate reports showed that Germany's manufacturing sector
expanded at the slowest pace in 11 months in July, while factory
activity in France contracted at the quickest pace in 13
Slowing growth in the euro area looked likely to add to pressure
on the European Central Bank to implement fresh measures to shore
up the faltering recovery in the region, ahead of its upcoming
monetary policy meeting on Thursday.
Elsewhere, GBP/USD was up 0.14% to 1.6619 after data showed
that activity in the U.K. manufacturing sector expanded at the
slowest pace in 14 months in August.
A separate report showed that U.K. mortgage lending rose
unexpectedly in July, to hit £2.30 billion from an upwardly revised
£2.20 billion the previous month.
The dollar remained near one week highs against the yen, with
USD/JPY adding 0.19% to 104.28 and was close to 10-month peaks
against the Swiss franc, with USD/CHF up 0.10% to at
AUD/USD was steady at 0.9338, while NZD/USD rose 0.29%
to trade at 0.8384.
The commodity linked dollars showed a muted reaction after data
earlier Monday showed that factory growth in China slowed last
month. China's official manufacturing index ticked down to 51.1
from 51.7 in July, while the HSBC manufacturing index slowed to
50.2 from 50.3 the previous month.
Elsewhere, USD/CAD slipped 0.12% to 1.0864.
The US Dollar Index, which tracks the performance of the
greenback versus a basket of six other major currencies, was at
82.76, not far from Friday's 11 month highs of 82.79.
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