06:08 AM EDT, 05/13/2024 (MT Newswires) -- US dollar pairs were mixed in early European trade on Monday with the continent's single currency outperforming while the Nordic currencies underperformed in what is a quiet day for economic data.

The euro climbed against a mostly stronger US dollar in Europe on Monday, making it the best performing currency in the G10 basket, while the Norwegian krone and Swedish krona both notched up notable losses.

USD/NOK and USD/SEK were both trading almost half a percent higher during the European morning while EUR/USD was quoted 0.18% higher at 1.0786. This was as stock markets declined across most parts of Europe following a soft performance from risky assets during the Asia trading session, and as government bond markets fell in most parts, leading yields to rise.

There was no economic data released in Europe on Monday where market attention is fixated on the Tuesday release of producer price index figures in the US and Wednesday's publication of inflation figures for April. Both will be instrumental in shaping expectations for the timing and scale of rate cuts from the Fed, which are currently seen commencing in September.

A quick summary of foreign exchange activity heading into the European lunch hour and US open;

EUR/USD was quoted 0.18% higher at 1.0786 after recovering from Friday's lows around 1.0759, leading the single currency to outperform the remainder of the G10 group despite an absence of economic newsflow. Meanwhile, Commodity Futures Trading Commission data released on Friday showed speculative investors' positioning flipped to net long in the week to May 07.

The local calendar highlight in Europe this week is the Wednesday release of Q1 GDP figures where a 0.3% increase is expected. This would leave the European economy looking like less of a laggard but Wednesday's US inflation figures are likely to matter more to the euro and particularly if they show price pressures remaining stubbornly elevated in April.

Elsewhere in Europe GBP/USD was quoted 0.07% higher at 1.2528, making it the second-best performing currency in the G10 basket, after recovering from Friday's intraday lows around 1.2502. Sterling did not benefit much from Friday's robust Q1 GDP data but will likely be more sensitive to tomorrow's employment numbers, especially the wage growth figure. BoE officials have identified wages and services price inflation as the main factors keeping them from cutting interest rates.

In Asia, USD/JPY was quoted 0.11% higher at 155.86 after consolidating below Friday's high of 155.96 throughout the Asia session and European morning. The yen did not benefit on Monday when the Bank of Japan reduced the size of its regular long-term bond purchases to 425 billion yen, from 475.5 billion yen, and will be among the most-sensitive currencies to the outcome of the forthcoming price index figures in the US.

Back in North America USD/CAD was trading 0.09% higher at 1.3677 in Europe on Monday after recovering from lows of around 1.3630 set in the wake of Friday's stronger-than-expected labor market report. Local market attention is fixated on Monday's release of building permits data for March and on the upcoming inflation readings from the US.