Euro drops after business activity data, eyes on central banks

The euro slid on Monday after activity data in key economies came in much softer than expected, giving markets a jolt at the start of a week packed with central bank meetings at which investors expect rate hikes in Europe and the United States.

The European common currency fell 0.43% to $1.1076, skidding after a quiet Asian session after PMI data showed business activity contracted in France and Germany.

Simon Harvey, head of FX analysis at Monex Europe, said slower euro zone growth would reduce the likelihood of “the portfolio inflows needed to take the euro back to its pre Ukraine war ranges of $1.12 to $1.20”.