U.S. Dollar Falls As European Shares Trade Higher

(RTTNews) - The U.S. dollar weakened against other major currencies in the European session on Monday, as the region's stocks traded higher heading into a high-stakes week defined by speeches from a slew of European Central Bank officials, the release of U.S. inflation prints, and the latest third quarter growth estimates from many countries that could influence expectations for monetary policy.

Eurozone bond yields started the week slightly lower as Brent crude futures fell below $97 a barrel following remarks by U.S. President Donald Trump that renewed military strikes on Iran were "highly unlikely" while talks to end their eight-month-old conflict continue.

Investors shrugged off the weak German trade data, which showed a narrowing trade surplus in September despite rising exports.

The U.S. dollar gave back some of Friday's tech selloff and payrolls-driven gains as artificial intelligence stocks recovered some ground lost in last week's sell-off on fears that tighter regulations on data center construction, energy use, and development costs could slow the AI infrastructure boom.

After Friday's jobs data offered signs the U.S. labor market is strengthening and added to the case for a December rate hike by the Federal Reserve, investors now look to October U.S. inflation data and key tech earnings for further direction.

The U.S. consumer price inflation data is due on Tuesday, followed by the producer price inflation data on Friday. In the European trading now, the U.S. dollar fell to 1.1196 against the euro and 1.3424 against the pound, from early highs of 1.1147 and 1.3359, respectively. If the greenback extends its downtrend, it is likely to find support around 1.13 against the euro and 1.35 against the pound.

Against the yen and the Swiss franc, the greenback dropped to 157.88 and 0.8175 from early highs of 158.39 and 0.8213, respectively. The greenback may test support around 154.00 against the yen and 0.80 against the franc.

The greenback slipped to a four-day low of 0.5612 against the NZ dollar, from an early high of 0.5557. On the downside, 0.57 is seen as the next support level for the greenback.

Against the Australia and the Canadian dollars, the greenback edged down to 0.6906 and 1.4078 from early highs of 0.6866 and 1.4124, respectively. The next support level for the greenback is seen around 0.70 against the Aussie and 1.38 against the loonie.

Looking ahead, the Conference Board's employment trends index for October, wholesale inventories and sales data for September and consumer inflation expectations for October are slated for release in the New York session.