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Dollar lower vs. yen, UK PMI data lifts pound

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Investing.com - The dollar was lower against the yen on Monday as Friday's soft U.S. jobs data continued to weigh, while the pound was boosted by stronger-than-forecast data on the U.K. service sector.

During European late morning trade, the dollar was trading close to session lows against the yen, with USD/JPY down 0.50% to 98.45.

Data on Friday showed that the U.S. economy added 162,000 jobs in July, less than the 184,000 increase forecast by economists.

The dollar fell against the pound, with GBP/USD climbing 0.37% to 1.5348 after data showed that the U.K. service sector expanded at the fastest pace in more than six-and-a-half years in July.

The U.K. services purchasing managers' index rose to 60.2 from 56.9 in June, well above economists' expectations for a reading of 57.2.

The dollar edged higher against the euro, with EUR/USD slipping 0.08% to 1.3269.

The euro briefly touched session highs after data showed that the euro zone's services PMI rose to 49.8 in July, from a final reading of 48.3 in June, adding to signs of a recovery in the euro zone.

A separate report showed that euro zone retail sales fell 0.5% in June, compared to expectations for a 0.6% decline.

Against the Swiss franc the dollar pushed higher, with USD/CHF climbing 0.17% to trade at 0.9309.

The greenback was mixed against its Australian, New Zealand and Canadian counterparts, with AUD/USD dipping 0.02% to 0.8900, NZD/USD dropping 0.94% to 0.7761 and USD/CAD inching down 0.05% to 1.0387.

The New Zealand dollar came under heavy selling pressure following reports of milk powder contamination at Fonterra, the world's largest dairy exporter.

The dollar index, which tracks the performance of the greenback versus a basket of six other major currencies, was down 0.08% to 81.94.

Investors were looking ahead to the Institute for Supply Management's non-manufacturing index later Monday for indications on the strength of the U.S. economic recovery.

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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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