Investing.com - The euro inched higher against the dollar on Monday as investors awaited data on private sector activity in the euro zone, after stronger than expected Chinese manufacturing activity boosted market sentiment.
EUR/USD edged up 0.07% to 1.3608, off session lows of 1.3564.
The pair was likely to find support at 1.3540 and resistance at 1.3642, the high of June 19.
Risk appetite was boosted after a report showed that China’s HSBC manufacturing purchasing managers’ index came in at 50.8 in June, up from a final reading of 49.4 in May. It was the first time the index has risen above the 50 level separating growth from contraction in six months.
The data eased fears over recent signs of a slowdown in the world’s second largest economy.
The euro touched session lows earlier after European Central Bank President Mario Draghi said over the weekend that interest rates would stay low over a longer period and that large-scale asset purchases are still part of the central bank''s toolkit.
Earlier this month, the ECB cut interest rates to record lows and launched a series of measures to boost lending to companies, in a bid to stave off the threat of deflation in the euro area.
The euro zone was to release data on manufacturing and service sector activity later in the session.
The shared currency was slightly lower against the yen, with EUR/JPY dipping 0.08% to 138.71.
Elsewhere Monday, the dollar was also slightly lower against the yen, with USD/JPY slipping 0.12% to 101.94.
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