Euro extends rebound from two-week low
Euro rose in European trade against dollar away from two-week lows on strong Chinese data, which bolstered risk appetite in markets.
USD/JPY rose 0.2% to 1.1737, after closing up 0.1% on Friday away from two-week lows at 1.1688.
EUR/USD lost 1% last week, the first weekly loss in three as investors bought up the greenback on haven demand.
Back then, hopes for US stimulus fades before the presidential elections while a second coronavirus wave ravages the US and UK.
The dollar index fell 0.2% on Monday for another session against a basket of major rivals.
Earlier Chinese data showed GDP growth at 4.9% in the third quarter, up from 3.2% in the second quarter.
China's industrial production rose 6.9% in September, improving from 5.6% in August, while retail sales rose 3.3%, improving from 0.5%.
USD/JPY tilted lower in Asian trade for a second session after marking the best performance since March and following earlier Japanese data. As of 07:01 GMT, USD/JPY fell 0.05% to 105.25, with a session-low at 105.01. Earlier Japanese data showed the M2 money supply index up 9% in October, missing estimates of 9.1%. The Japanese government pledged further steps to counter the coronavirus second wave and boost the economy. The World Health Organization said the coronavirus vaccine could change the situation completely by the end of the year, with Pfizer announcing its vaccine is over 90% effective. According to the WHO, 50.68 million people worldwide have been infected so far by Covid 19, with the death toll standing at 1.261 million.
At 12:30 GMT, the US economy released the unemployment claims reading, at 0.751 million in the week ending October 24, the lowest level since March, better than forecasts of 0.810 million, vs. 0.791 million in the previous week after it was revised from 0.787 million. This data is positive for the US economy.
The US Energy Information Administration (EIA) showed today that the US crude inventories fell 1 million barrels to reach a total of 488.1 million barrels during the past week, missing analysts' forecasts of a drop by 1.9 million barrels. The gasoline stockpiles rose 1.9 million barrels to a total of 227 million, and distillate stockpiles fell 3.8 million barrels to a total of 160.7 million. While the American Petroleum Institute (API) showed yesterday in preliminary data that inventories rose by around 584,000 barrels during same period.