The euro edged lower against the pound and stuck in ranges versus the rest of majors at the beginning of Monday's New York deals as cautious traders stayed on the sidelines ahead of this week's U.S. Federal Reserve meeting. Eurozone's trade data provided little impact in euro exchange rates.
Equities gained as investors remain hopeful ahead of the two-day policy meeting of the Federal Reserve. Fed Chief Ben Bernanke is expected to address some investor concerns after the meeting.
Eurozone's trade in goods with the rest of the world resulted in a surplus in April, which was lower than a month earlier, data from Eurostat revealed today.
The trade surplus fell to EUR 14.9 billion in April from EUR 22.5 billion in March. A year earlier, the surplus amounted to EUR 3.3 billion.
Exports grew 9 percent year-on-year in April, following a flat result in March. Imports rose 1 percent annually, recovering marginally from 10 percent slump in the previous month.
Germany's economic activity will pick up strongly in the second quarter, the Bundesbank said in its monthly report. But the bank forecast the momentum to slowdown in summer.
Employment in the German manufacturing sector increased modestly in April, preliminary data released by the Federal Statistical Office showed.
The yen fell in the morning on expectations of a dovish Fed, which is likely to signal it is in no hurry to tighten policy.
Besides, Japan PM Abe's Ally Yamaguchi said the central bank should prepare more easing steps also provided a bear run in yen.
An index measuring tertiary industry activity in Japan came in unchanged in April from the previous month, the Ministry of Economy, Trade and Industry reported.
The euro moved in a range of 1.3350- 1.3317 against the US dollar and 126.68-126.07 against the yen in most of today's early deals as lack of key catalysts kept fx soft ahead of an eventful week.
The common currency fell to a 5-day low of 0.8474 against the pound around 8:20 am ET. Meanwhile, the euro erased some of its gains against the Swiss franc and was trading in a narrow range of 1.2324 and 1.2306.
Conditions for New York manufacturers improved modestly in the month of June, according to a report released by the Federal Reserve Bank of New York on Monday, with the index of activity in the sector climbing into positive territory.
The New York Fed said its general business conditions index rose to a positive 7.8 in June from a negative 1.4 in May, with a positive reading indicating an increase in regional manufacturing activity. Economists had expected to climb to a positive 0.5.
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Forex News
June 05, 2026 16:18 ET A busy week for economic news flow saw a slew of reports being released that reflected the trends in the U.S. labor market. In Europe, economic growth and inflation data gained attention as the European Central Bank and Bank of England head for policy session later in the month. In Asia, the monetary policy session of the Indian central bank was in focus as the country, a major oil importer, reels under the pressures of a weaker rupee and rising inflation.