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Dollar remains broadly higher vs. rivals despite ISM miss

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Investing.com -

Investing.com - The dollar remained broadly higher against the other major currencies on Monday, despite the release of disappointing U.S. manufacturing data, as investors remained cautious ahead of the European Central Bank's monthly policy meeting this week.

The dollar was higher against the euro, with EUR/USD slipping 0.18% to 1.3609.

In a report, the Institute of Supply Management said its manufacturing purchasing managers' index ticked down to 53.2 in May, from a reading of 54.9 the previous month, confouding expectations for a rise to 55.5.

Meanwhile, the single currency remained under pressure after 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, official data showed that German consumer price inflation accelerated at an annualized rate of 0.9% last month, down from 1.3% in April. Analysts had expected German consumer prices to rise by 1.1% in May.

Separately, Markit research group said that Spain's manufacturing PMI rose to 52.9 this month, from 52.7 in May, while Italy's manufacturing PMI slipped to 53.2 in June, from a reading of 54.0.

The pound was little changed against the dollar, with GBP/USD easing 0.01% to 1.6752.

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 climbing 0.43% to 102.20 and with USD/CHF rising 0.26% to 0.8976.

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 edging down 0.15% to 0.9246, NZD/USD sliding 0.37% to 0.8468 and USD/CAD gaining 0.49% to 1.0898.

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 80.60.

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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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