RTTNews - The dollar plunged versus most major counterparts Monday morning as US stocks looked to extend July's gains, fueling further risk appetite.
Strong bank earnings from London helped drive the dollar to a yearly low versus the sterling.
Among factors that may drive trading for the rest of the day, individual automakers will report their sales, comprising unit sales of domestically produced cars and light duty trucks on Monday.
The results of the manufacturing survey of the Institute for Supply Management, which are based on data compiled from purchasing and supply executives nationwide, are due out at 10 AM ET on the same day. Economists expect the index to show a reading of 46.5 for July.
The Commerce Department's construction spending report to be released at 10 AM ET on Monday is expected to show a 0.6% decline in spending for June.
This week's economic calendar will build up to the monthly non-farm payroll report, set for release at 8:30 AM on Friday.
Looking at the currency charts, the buck slipped to 1.6878 against the sterling, plunging through support to hit its lowest level since October 2008. With the loss, the dollar is more than 30 cents off its yearly high, set in January.
UK manufacturing sector expanded for the first time since March 2008, a report from the Chartered Institute of Purchasing and Supply and Markit Economics showed Monday.
The dollar was testing a yearly low versus the euro, dropping to 1.4316. A move to 1.4340 would take the dollar to its lowest level in eight months.
Germany's manufacturing activity improved more than initially estimated in July, a final report from Markit /BME showed Monday.
In what appears to be an inevitable move back to parity with the surging loonie, the dollar dropped to another yearly low of C$1.0675.
Monday, Nouriel Roubini, the New York University economist, known for predicting the financial crisis, reportedly said he expects commodity price to increase further next year with rising economic growth, giving resource-linked currencies a boost.
The buck remained choppy versus the yen, firming up to 95 in paring some losses from late last week.
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