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Euro drops after business activity data, eyes on central banks

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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.

There is plenty more for investors to watch this week - the Federal Reserve concludes a meeting on Wednesday, followed by the European Central Bank a day later and the Bank of Japan on Friday, as well as earnings from many heavyweight companies. "The last week left markets believing in a soft-landing scenario for the U.S. markets where the ends its hikes ... and then sees a steady drop in CPI without a recession," said Bob Savage, head of markets strategy at BNY Mellon.

The yen was last a touch firmer on the day with the dollar down 0.28% at 141.45 yen , and the euro down 0.6% at 156.7 yen.

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