The euro climbed against its major counterparts in early European trading on Monday amid risk appetite, as European markets shrugged off political problems in Italy after the defeat of the nation's Prime Minister Matteo Renzi in a referendum on constitutional reform.

Survey results from IHS Markit showed that the euro area private sector expanded at the fastest pace in 11 months in November but the pace of growth was slightly weaker than initially estimated.

The final composite output index rose less-than-estimated to 53.9 in November from 53.3 in October. The flash score was 54.1.

Germany's private sector expanded strongly in November. The final composite PMI fell marginally to 55 from 55.1 in October, but remained above the flash reading of 54.9.

The final services PMI came in at a 6-month low of 55.1 versus 54.2 in October. The flash score was 55.

Data from Eurostat showed that Eurozone retail sales rebounded in October after falling for two straight months.

Retail sales volume climbed 1.1 percent month-on-month in October largely driven by non-food sales. October's increase reversed a revised 0.4 percent fall in September.

Speaking to France 2 television, European Economics Commissioner Pierre Moscovici said that Italy is stable enough to withstand the political instability created by the defeat of Renzi in a referendum.

"It's a solid country with solid authorities and I have complete confidence that Italy can handle this situation," he told.

The euro fell sharply in the Asian session, amid worries about political and economic instability in Europe after Italian Prime Minister Matteo Renzi said he will resign following his defeat in a constitutional reform referendum on Sunday.

The euro edged up to 0.8377 against the pound, recovering from its early 4-1/2-month low of 0.8305. The next possible resistance for the euro-pound pair is seen around the 0.86 mark.

Survey data from IHS Markit and the Chartered Institute of Procurement & Supply showed that British service sector grew for a fourth straight month in November at its fastest pace in ten months amid rising employment.

The purchasing managers' index for the services sector rose to 55.2 from 54.5 in October.

The single currency, having fallen to near a 9-month low of 1.0505 against the greenback at 6:15 pm ET, reversed direction and was trading higher at 1.0662. Continuation of the euro's uptrend may see it challenging resistance around the 1.08 level.

Following a 2-week low of 1.0695 hit at 6:15 pm ET, the euro climbed to a 5-day high of 1.0794 versus the franc. Further uptrend may take the euro to a resistance around the 1.12 region.

The 19-nation currency reversed from an early 6-day low of 118.72 against the Japanese yen, advancing to 121.62. If the euro-yen pair extends rise, 125.00 is possibly seen as its next resistance level.

Survey figures from Cabinet Office showed that Japan's consumer confidence declined for the second straight month in November to the weakest level in six months.

The seasonally adjusted consumer confidence index fell to 40.9 in November from 42.3 in the previous month. In September, the reading was 43.0.

The euro bounced off to 1.4322 against the aussie, 1.4191 against the loonie and 1.5006 against the kiwi, off its early weekly low of 1.4147, 1-year low of 1.4027 and 1-1/2-year low of 1.4772, respectively. The euro is seen finding resistance around 1.45 against the aussie, 1.43 against the loonie and 1.51 against the kiwi.

Looking ahead, at 8:30 am ET, the Federal Reserve Bank of New York President William Dudley speaks about the economy and monetary policy in New York.

Markit's final U.S. services PMI, ISM non-manufacturing composite index and labor market conditions index for November are due in the New York session.

The Federal Reserve Bank of St. Louis President James Bullard will speak about the US economic outlook at the Arizona State University's annual economic forecast luncheon in Phoenix at 2:05 pm ET.

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