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Dollar steady vs. yen, euro edges higher

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Shutterstock photo - " The dollar was steady close to six week highs against the yen on Monday, while growing expectations that the European Central Bank may cut rates kept pressure on the euro.

During European morning trade, the euro eased back from six-week lows against the dollar, with EUR/USD edging up 0.13% to 1.3509, after falling as low as 1.3442 earlier.

The single currency posted the largest weekly decline in a year against the dollar last week after data showing that euro zone inflation fell to a four year low in October sparked concerns that the ECB may tighten policy in order to safeguard the recovery.

The euro found support after revised data on Monday showed that the euro zone manufacturing purchasing managers' index edged up 51.3 in October from a final reading of 51.1 in September.

Germany's manufacturing PMI rose to 51.7 last month from 51.1 in September as new orders and production levels rose.

The dollar was almost unchanged near one-and-a-half month highs against the yen, with USD/JPY dipping 0.02% to trade at 98.67.

Demand for the dollar continued to be underpinned after unexpectedly strong U.S. manufacturing data on Friday added to expectations that the Federal Reserve could start to taper its stimulus program as soon as next month.

Federal Reserve Bank of Dallas president Richard Fisher said Monday that the recent fiscal standoff in Washington counteracted the role of the Fed's easy money policies in the economic recovery. The comments came during a speech in Sydney.

Elsewhere, the dollar moved lower against the pound, with GBP/USD rising 0.22% to 1.5961.

Sterling rose to session highs after data showed that activity in the U.K. construction sector expanded at the fastest rate in six years in October.

The U.K. construction PMI rose to 59.4, the highest level since September 2007, from 58.9 in September. Economists had expected an unchanged reading.

The dollar was almost flat against the Swiss franc, with USD/CHF inching down 0.05% to 0.9116.

The greenback was lower against its Australian and New Zealand counterparts, with AUD/USD rising 0.63% to 0.9495 and NZD/USD climbing 0.44% to 0.8295.

Australia's dollar was higher after data released on Monday showed that retail sales in Australia rose 0.8% in September, beating expectations for a 0.4% increase.

The greenback slid lower against the Canadian dollar, with USD/CAD losing 0.11% to trade at 1.0411.

The U.S. dollar index, which tracks the performance of the greenback versus a basket of six other major currencies, was down 0.14% to 80.69.

The U.S. was to release data on factory orders later in the trading day. offers an extensive set of professional tools for the financial markets.

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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.

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