SYDNEY/LONDON—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 0.4 percent to $1.1083, skidding after a quiet Asian session on PMI data that showed eurozone business activity shrank much more than expected in July.
The pound dropped after British activity data, but less dramatically and was last down 0.1 percent at $1.2839.
Simon Harvey, head of FX analysis at Monex Europe, said slower eurozone 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.”…