Euro is stable at the seven-month low against the US dollar on Monday, despite the publication of optimistic data on activity in the manufacturing and services sectors of the Eurozone, while the expectations of additional stimulus from the ECB to the end of the year put pressure on the currency growth.
During the European morning trade, the EUR/USD pair reached 1.0892, the session high; the pair subsequently consolidated at 1.0886.
The pair was likely to receive support at 1.0857, Friday's low and a seven-month low level, and resistance at 1.0932, Friday's high.
The research company Markit said the Eurozone’s composite index of business activity (production and services) increased to a 10-month high of 53.7 in October from 52.6 in the previous month. Analysts had expected the index to grow to 52.8 this month.
Earlier on Monday, Markit said that the index of business activity in manufacturing in Germany rose to 55.1 in October from 54.3 in the previous month, although changes were not expected.
PMI in Germany's service sector rose to 54.1 this month from 50.9, while it was expected to grow to 51.5.
Markit also reported that manufacturing PMI in France rose to 51.3 in October from 49.7 in the previous month, exceeding the forecast of 50.0.
However, the PMI in France's services sector fell to 52.1 this month from 53.3, while the expected decline was to 53.0.
The single currency is maintained at a seven-month low against the US dollar as the European Central Bank President, Mario Draghi, said last week that the bank may expand its program to stimulate the economy in December.
The euro edged higher against the pound: EUR/GBP rose 0.18% to 0.8901.
The demand for the dollar persists after the President of the Federal Reserve Bank of New York, William Dudley, said that the US central bank is likely to raise interest rates a little later, but only in the case if the economy continues to strengthen.
GBP/USD was traded at 1.2204, which is down 0.20%, while USD/JPY was traded at 103.89 with an increase of 0.11%.
The USD index, which tracks the greenback against a basket of six major currencies, was up 0.10% to 98.72, holding close to the fresh eight-month high at 98.82.