Euro lower after U.S. data; IMF says it could trim global GDP estimate

The euro pushed lower against the U.S. dollar on Monday, as U.S. data continued to buoy the greenback amid growing expectations for a U.S. rate hike in October or December.

EUR/USD hit 1.1147 during U.S. morning trade, the session low; the pair subsequently consolidated at 1.1184, sliding 0.1%.

Sterling was slightly higher with GBP/USD up 0.03% to trade at 1.5183.

The greenback was considerably lower against the yen with USD/JPY last trading at 119.90, down 0.49%.

In August, consumer spending in the U.S. rose a seasonally adjusted 0.4% to match the revised gain in July, the Commerce Department reported Monday. Outlays have risen at least 0.3% in each of the last six months.

Personal incomes rose 0.3% last month. Incomes have also grown steadily since the early spring, largely reflecting strong job creation that’s tugged the unemployment rate down to a post-recession low of 5.1%.

Since spending grew faster than income, the amount of money individuals save fell a tick to 4.6% from 4.7%.

Inflation as measured by the PCE price index was unchanged in August. The PCE index has risen a scant 0.3% in the past 12 months, held in check by tumbling gasoline prices, a strong dollar and cheaper imports.

The core PCE index that excludes food and energy edged up 0.1% last month, and it’s 1.3% higher over the past year.

A separate report, meanwhile, said that an index of pending home sales fell 1.4% in August to the lowest level in five months, suggesting buyers have been deterred by rising prices tied to a shortage of homes on the market. The index from the National Association of Realtors declined to seasonally adjusted 109.4 in August from 110.9 in the prior month.

Meanwhile, market sentiment was hurt after International Monetary Fund head Christine Lagarde said in an interview on Monday that the IMF is likely to revise downwards its estimates for global economic growth due to slower expansion in emerging economies.

"This phenomenon should lead us to revise our growth forecast. World GDP (growth) at 3.3% this year is not realistic anymore. A forecast of 3.8% (growth) for next year is not either. We will remain above 3%, though," Christine Lagarde was quoted as saying.