The euro fell to fresh session lows against the dollar on Monday, as the dollars strong gains against the yen weighed on the other main currencies, while mixed euro zone manufacturing data underlined concerns over the economic outlook for the region.
EUR/USD was down 0.40% to 1.3535, the lowest since November 26, from 1.3590 on Friday.
The pair was likely to find support at 1.3400 and resistance at 1.3615, the session high.
The greenback advanced to fresh six-month highs against the yen on Monday after Bank of Japan Governor Haruhiko Kuroda fuelled expectations that the bank will step up measures to hit its inflation target, saying the BoJ would adjust monetary policy “without hesitation."
Revised data on Monday showed that the bloc’s manufacturing purchasing managers’ index rose to a two year high of 51.6 last month from October''s 51.3, slightly higher than a preliminary estimate of 51.5.
However, Spain’s manufacturing sector contracted for the first time since July last month, while the French manufacturing sector contracted for the 21st straight month.
The Spanish PMI fell to 48.6 from 50.9 in October, led lower by weaker orders and output.
The French index fell to 48.4 from 49.1 in October, the lowest level since June.
The euro was trading close to five year highs against the yen, with EUR/JPY edging up 0.07% to 139.29, near Friday’s high of 139.69.
Elsewhere, the euro dropped to the lowest since January against sterling, with EUR/GBP down 0.46% to 0.8260.
The pound strengthened after data showed that activity in the U.K. manufacturing sector expanded at the fastest rate in 33 months in November.
The U.K. manufacturing purchasing managers’ index rose to 58.4, the highest level since February 2011, from an upwardly revised 56.5 in October.
Analysts had expected the manufacturing PMI to tick down to 56.0.
The new orders component of the index jumped to 64.6, the highest in almost 20 years, from 61.3 in October.
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