US dollar lower against the euro

US dollar lowered in value against the common currency on Monday, despite the support it was receiving amid FED speculation.

EUR/USD rose to a session high at 1.3060 at 9:55 GMT, after which consolidation followed at 1.3050.

Earlier on Monday a report showed that Flash Harmonized Index of Consumer Prices (HICP) in the Euro zone advanced to 1.6% in June from 1.4% in May, meeting forecasts.

Additionally, Unemployment Rate in the single currency zone rose to 12.1% in May from a revised down 12.0% in April, while preliminary estimates showed a rate of 12.3%.

Final Manufacturing PMI in the euro region ticked up to 48.8 in June from 48.7 a month ago. It showed that contraction rate slowed down, but with the smallest pace for almost 1.5 years. Data implied that manufacturing activity has begun picking up the pace, but in a foreseeable period a recovery was not very likely, because public debt and unemployment rate were still on high levels. Manufacturing PMI in most countries in the Euro zone showed a slight drop in June, compared to preceding months. Greece has recorded the least negative results for the past two years, while in Spain manufacturing activity has not shrunk on a monthly basis for the first time in 26 months. Manufacturing sector in Ireland was the only one to register expansion.

Meanwhile, market players began focusing on the crucial US ISM manufacturing data, that was to be released later in the trading day. Positive results could boost the demand for the US dollar, while ISM index could be an addition to the spectrum of major economic indicators to show that US economic recovery was on its way, thus encouraging Federal Reserve policymakers to take action and reduce the scale of current monthly asset purchases.