The euro pushed higher Monday after Greece launched a scheme to buy back its debt from private investors, as part of an agreement to unlock a new bailout package worth EUR44 billion.
Euro zone finance ministers were to hold talks in Brussels later in the day to discuss the terms of the new Greek aid deal, after Germany’s parliament gave it the green light on Friday. Furthermore, euro showed little reaction after Spain formally requested a bailout worth EUR37 billion for its banking sector.
Forex Bulletproof 2.0 Patented Striker Technology! Elsewhere, data showed that the final euro zone manufacturing purchasing managers’ index remained unchanged at 46.2 in November, the highest level since March, but remaining in contraction territory for the 16th consecutive month.
In the U.K., data showed that the manufacturing PMI rose to 49.1 last month, its highest level since August, from October's downwardly revised 47.3 and beating expectations for a reading of 48.1. However, the index remained below the 50.0 level which separates contraction from expansion for the seventh successive month.
Earlier Monday, official data showed that retail sales in Switzerland rose by 2.7% in October, less than the expected 4.1% increase. A separate report showed that the SVME PMI rose to 48.5 in November, a four-month high, from a reading of 46.1 in October.
In other news, the yen remained under pressure ahead of upcoming elections on December 16 which could lead to further monetary easing by the Bank of Japan, whereas the Australian dollar remained also under pressure after official data were published showing that domestic retail sales were flat in October fuelled expectations for a rate cut by the Reserve Bank of Australia at its policy meeting on Tuesday.
In latest news, the Institute for Supply Management’s U.S. factory index fell to 49.5 in November from 51.7 a month earlier, the Tempe, Arizona-based group said today. The dividing line between expansion and contraction is 50, and economists’ estimates ranged from 49 to 53.5.