* Euro zone business growth stalls with Germany in reverse
* U.S. data mixed
* Sterling down as Brexit talks, Supreme Court ruling eyed
(Recasts with U.S. data, afternoon trading)
By Saqib Iqbal Ahmed
NEW YORK, Sept 23 (Reuters) - The dollar edged higher
against the euro on Monday after dismal European manufacturing
and services data elevated concerns about the state of the euro
zone economy, even as U.S. economic data came in mixed.
Euro zone business growth stalled this month, a survey
showed on Monday, dragged down by shrinking activity in
powerhouse Germany, where a manufacturing recession deepened
unexpectedly. Monday's downbeat survey results come less than two weeks
after the European Central Bank pledged indefinite stimulus to
revive the 19-country currency bloc's ailing economy.
IHS Markit's Euro Zone Composite Flash Purchasing Managers'
Index (PMI), sank to 50.4 in September from 51.9 in August and
was below all forecasts in a Reuters poll that had predicted a
reading of 51.9.
"The eurozone flash PMI dashed hope that the worst was past
and supports those that were calling for bold ECB action," Marc
Chandler, chief market strategist at Bannockburn Global Forex,
LLC, said in a note.
The euro was 0.22% lower against the greenback at $1.0993.
The euro zone economy is not showing any convincing sign of
a rebound and a persistent downturn in manufacturing risked
infecting the rest of the economy, European Central Bank
President Mario Draghi said on Monday. Meanwhile, U.S. employment in the services sector shrank for
the first time in 9-1/2 years in September, IHS Markit's
Purchasing Manager's Index (PMI) showed. Data also showed U.S. manufacturing activity rose in
September, topping expectations.
The dollar has held up well in recent months as investors
are attracted to its relatively high yield and the strength of
the U.S. economy.
Speculators boosted their net long bets on the U.S. dollar
in the latest week to a five-week high, according to
calculations by Reuters and Commodity Futures Trading Commission
data released on Friday. The dollar index .DXY , which measures the greenback
against a basket of currencies, was 0.1% higher at 98.615, its
highest since Sept. 12.
Sterling slipped 0.34% to trade close to a one-week low as
investors looked for signs of progress in Britain's Brexit talks
and awaited a Supreme Court ruling on whether Prime Minister
Boris Johnson misled Queen Elizabeth over his reasons for
suspending parliament this month.
Euro vs U.S. dollar https://tmsnrt.rs/30JMXGc
Graphic: World FX rates in 2019 http://tmsnrt.rs/2egbfVh
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