RTTNews - The euro saw some strength against other majors on Monday as a better-than-expected Eurozone consumer price index report indicated a possible reversal of negative inflation in months ahead.
The European currency climbed toward a multi-week high against the dollar and also inched up versus the yen. Gains were somewhat limited as lower global stocks reduced risk appeal.
Consumer prices dropped 0.2% in August from the previous year, a flash estimate from the European Union statistics office in Luxembourg showed Monday. Economists had expected the consumer price index to drop 0.4% in August, following a record fall of 0.7% in July.
The euro climbed above 1.4340 against the U.S. dollar. If the 16-member currency can get above 1.4405 it will find a 3 1/2-week high.
The ISM - Chicago said its index of manufacturing activity rose to 50.0 in August from 43.4 in July, with a reading of 50 acting as the breakeven point versus contraction and expansion. Economists had been expecting a more modest increase to a reading of 48.0.
The euro remained in a range near an eight-week high against the British pound. The European currency moved near 0.8800 after hitting as high as 0.8838.
U.K. house prices rose in August for the first time since July 2007, a report published by Hometrack said today. House prices in England and Wales edged up 0.1% in August from July, which was the first increase in two years. House prices increased in August after staying flat for three consecutive months. Annually, average asking prices were down 6.7% in August, marking the slowest decline in almost a year.
The euro inched higher against the yen after hitting a five-week low in overnight deals. The European currency moved near 133.05 after hitting as low as 132.14 earlier in the morning.
Japan's industrial output rose 1.9% from June to a seasonally adjusted 82.4 in July, the fifth straight month of increase, the Ministry of Economy, Trade and Industry said Monday. The figure exceeded the average market prediction of a 1.6% rise. The shipment index climbed 2.3% to 83.6 and the inventory gauge fell 0.2% to 95.1, sending the inventory to shipment index down 4.1% to 123.5. Looking ahead, the government forecast that the headline index will rise 2.4% in August, and 3.2% in September.
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