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Dollar broadly higher vs. rivals ahead of ISM report

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Investing.com -

Investing.com - The dollar was broadly higher against the other major currencies on Monday, as investors remained cautious ahead of the European Central Bank's monthly policy meeting this week, while markets also eyed U.S. manufacturing data due later in the day.

The dollar was higher against the euro, with EUR/USD shedding 0.23% to 1.3602.

Data on Friday showing that the annual rate of inflation in Italy and Spain slowed in May added to expectations that the ECB will take steps to tackle low consumer price growth, which is threatening the fragile recovery in the single currency bloc.

Earlier Monday, Markit research group said that Spain's manufacturing purchasing managers' index rose to 52.9 this month, from 52.7 in May, in line with market expectations.

Italy's manufacturing PMI slipped to 53.2 in June, from a reading of 54.0, compared to expectations for a fall to 53.7.

Meanwhile, sentiment on the greenback remained vulnerable after data on Friday showed that U.S. consumer spending fell 0.1% in April from a month earlier, missing forecasts for a 0.2% increase. Personal income rose 0.3%, in line with forecasts.

Separately, the final reading of the University of Michigan's consumer-sentiment index for May came in at 81.9, up slightly from a preliminary reading of 81.8, but falling short of forecasts for 82.5.

The pound was little changed against the dollar, with GBP/USD easing 0.06% to 1.6743.

Markit said the U.K. manufacturing PMI ticked down to 57.0 in June, from a reading of 57.3 the previous month, in line with expectations.

A separate report showed that net lending to individuals in the U.K. rose by £2.4 billion in April, below expectations for a £2.7 billion increase, after a downwardly revised £2.8 billion gain in March.

The dollar was higher against the yen and the Swiss franc, with USD/JPY up 0.27% to 102.04 and with USD/CHF gaining 0.30% to 0.8980.

In Switzerland, the SVME PMI fell to a one-year low of 52.5 in May, from a reading of 55.8 the previous month, compared to expectations for a decline to 55.0.

The greenback was higher against the Australian, New Zealand and Canadian dollars, with AUD/USD dropping 0.59% to 0.9255, NZD/USD sliding 0.39% to 0.8467 and USD/CAD adding 0.13% to 1.0859.

Also Monday, official data showed that building approvals in Australia dropped 5.6% in April, confounding expectations for a 1.8% increase, after 4.8% fall in March, whose figure was revised from a previously estimated 3.5% slip.

The US Dollar Index, which tracks the performance of the greenback versus a basket of six other major currencies, was up 0.20% to 80.59.

Later in the day, the Institute of Supply Management was to publish a report on U.S. manufacturing activity.

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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.


The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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