Dollar Loses Ground Against Other Major Currencies

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The U.S. dollar lost ground against other major currencies on Monday as traders reacted to the latest batch of economic data, and looked ahead to more due during the course of the week.

Growth in U.S. manufacturing activity unexpectedly slowed in the month of April, according to a report released by the Institute for Supply Management on Monday.

The ISM said its manufacturing PMI slid to 60.7 in April after jumping to a more than 37-year high of 64.7 in March.

A report from the Commerce Department showed U.S. construction spending rose by much less than expected in the month of March, rising by 0.2% to an annual rate of $1.513 trillion in March after falling by 0.6% to a revised rate of $1.510 trillion in February.

Economists had expected construction spending to spike by 2% compared to the 0.8% drop originally reported for the previous month.

The dollar index drifted down to 90.87, and despite recovering to 90.97, was down more than 0.3% from previous close.

Against the euro, the dollar weakened to 1.2065, sliding from 1.2020 a unit of the European currency. Eurozone manufacturing activity logged a record expansion in April, albeit at a slower than previously estimated pace, final data from IHS Markit showed.

The manufacturing Purchasing Managers’ Index improved to 62.9 in April from 62.5 in March. The flash reading was 63.3.

This was the highest level since June 1997 and the sector has expanded for the tenth straight month.

The Pound Sterling was stronger by nearly 0.7%, fetching $1.3910 a unit, after closing at $1.3817 on Friday.

The Yen was stronger at 109.07 a dollar, firming up from 109.33.

The Aussie was little changed with the AUD-USD pair at 0.7762.

Against Swiss franc, the dollar weakened to CHF 0.9108.

The Loonie was up slightly at 1.2277 a dollar, as oil prices surged higher and Canada’s factory activity expanded for yet another month.

The material has been provided by InstaForex Company – www.instaforex.com

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