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Dollar trims losses but remains weaker after ISM report

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Investing.com -

Investing.com - The dollar trimmed losses against the other major currencies on Monday, but remained under pressure as downbeat U.S. service sector data further dampened optimism over the strength of the economy.

The dollar was higher against the yen, with USD/JPY up 0.28% at 120.23, off Friday's one-month low of 118.66, as investors locked in profits on the greenback's fall.

The Institute of Supply Management reported on Monday that its non-manufacturing purchasing managers' index fell to 56.9 in September from a reading of 59.0 the previous month. Analysts had expected the index to tick down to 57.5 last month.

The report came after weak U.S. jobs data on Friday underlined fears that a slowdown in global economic growth has spread to the U.S. economy and prompted investors to push back expectations on the timing of an initial rate hike by the Federal Reserve to early 2016.

The dollar was lower against the euro, with EUR/USD edging up 0.10% to 1.1223, after hitting session highs of 1.1289.

Research group Markit earlier said Germany's services PMI slipped to 54.1 in September from 54.3 in August, while France's services PMI ticked up to 51.9 from 51.2.

Markit's services PMI for the entire euro zone fell to 53.7 last month from 54.0 in August.

Elsewhere, the dollar was steady against the pound, with GBP/USD at 1.5178 and was higher against the Swiss franc, with USD/CHF rising 0.31% to 0.9746.

Sterling weakened after Markit reported that its U.K. services PMI fell to 53.3 in September from a reading of 55.6 the previous month. Analysts had expected the index to rise to 56.0 last month.

The Australian and New Zealand dollars were stronger, with AUD/USD gaining 0.42% to 0.7077 and with NZD/USD advancing 0.95% to 0.6504.

Data earlier showed that job advertisements in Australia increased by 3.9% in September after a 1.3% rise in August, whose figure was revised from a previously anticipated 1.0% gain.

Meanwhile, USD/CAD slid 0.44% to trade at 1.3094.

The U.S. dollar index, which measures the greenback's strength against a trade-weighted basket of six major currencies, was steady at 95.97, off lows of 95.55 hit earlier in the day.

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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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