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WASHINGTON — Euro and sterling rose

against the safe-haven dollar on Monday, supported by a risk-on

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sentiment across markets as investors digested positive euro

zone data and looked to cash in on the strength of the U.S.

currency.

A survey showed on Monday that investor morale in the euro

zone improved in November, the first time it rose in three

months, reflecting hopes that recent warmer temperatures and

falling energy prices will prevent gas rationing on the

continent this winter.

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The euro was up 0.69% to $1.0029, its highest level

since Oct. 27, while sterling was last trading at

$1.1534, up 1.40% on the day.

Investors were also cheered by a readout on Monday showing

that German industrial production grew in September, beating

analyst expectations. Industrial output was up 0.6% on the

previous month, the Federal Statistical Office said.

Against a basket of currencies, the dollar index fell

0.91% to 110.070.

Though it had lost almost 2% at the end of last week after

reports that China would make substantial changes to its

COVID-19 policy in coming months, the downward move in the

dollar on Monday was likely more about positioning, said Bipan

Rai, North America head of FX Strategy at CIBC Capital Markets.

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“I think the market’s got really long US dollars, and is now

just taking profits here. That’s behind the move for today,” he

said.

Investors were also assessing Friday’s U.S. jobs report

which showed that firms added a more-than-expected 261,000 jobs

in October and hourly wages continued to rise, evidence of a

still-tight labor market.

But hints of some easing of market conditions, with the

unemployment rate rising to 3.7%, fueled hopes that the much

sought-after Federal Reserve pivot could be on the horizon,

capping potential gains for the dollar.

Four Fed policymakers on Friday also indicated they would

still consider a smaller interest rate hike at their next policy

meeting.

Investors are now eagerly waiting for a readout of U.S.

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consumer price index data on Thursday. Analysts surveyed by

Reuters expect headline CPI to land at an annual 8% for October,

down slightly from 8.2% in September.

“If we do get a stronger than expected print, I think the

release valve there will be for a higher terminal rate in the

United States, and ultimately, that’s going to matter for the

dollar,” said Rai.

In crytocurrencies, bitcoin last fell 1.41% to

$20,837.00 and ethereum last fell 2.76% to

$1,600.30.

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Currency bid prices at 2:45PM (1945 GMT)

Description RIC Last U.S. Close Pct Change YTD Pct High Bid Low Bid

Previous Change

Session

Dollar index 110.0700 111.0900 -0.91% 15.060% +111.2800 +110.0400

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Euro/Dollar $1.0029 $0.9960 +0.68% -11.80% +$1.0035 +$0.9898

Dollar/Yen 146.4950 146.6700 -0.12% +27.25% +147.5600 +146.0950

Euro/Yen 146.91 145.99 +0.63% +12.73% +147.0000 +145.6800

Dollar/Swiss 0.9878 0.9942 -0.63% +8.30% +0.9981 +0.9876

Sterling/Dollar $1.1537 $1.1372 +1.45% -14.70% +$1.1541 +$1.1291

Dollar/Canadian 1.3488 1.3481 +0.05% +6.67% +1.3552 +1.3465

Aussie/Dollar $0.6480 $0.6470 +0.12% -10.88% +$0.6490 +$0.6401

Euro/Swiss 0.9907 0.9897 +0.10% -4.46% +0.9919 +0.9865

Euro/Sterling 0.8691 0.8756 -0.74% +3.46% +0.8790 +0.8691

NZ $0.5939 $0.5930 +0.16% -13.22% +$0.5945 +$0.5866

Dollar/Dollar

Dollar/Norway 10.2070 10.2350 -0.21% +15.94% +10.3245 +10.2130

Euro/Norway 10.2393 10.2014 +0.37% +2.26% +10.2853 +10.1872

Dollar/Sweden 10.8199 10.8952 +0.10% +19.99% +10.9699 +10.8108

Euro/Sweden 10.8524 10.8416 +0.10% +6.04% +10.8746 +10.8020

(Reporting by Hannah Lang in Washington; Editing by Ed Osmond,

Chizu Nomiyama, Andrea Ricci and Tomasz Janowski)