Dollar lower after downbeat ISM services data, Wall Street sharply up at open

The greenback was lower in early U.S. trade Monday, after data showed that the ISM services index fell to 56.9% from 59% in August. U.S. stocks opened sharply higher.

A measure of the services side of the economy slowed in September to a below-forecast reading that was the lowest in three months.

The Institute for Supply Management said its services index fell to 56.9% from 59% in August, which was below the 57.5% economist forecast.

It's not just issues like the energy price collapse, the dollar's strength and China's weakness which are impacting the domestic economy, the report says.

"Recent economic turmoil has caused sales to drop. We feel that this will be only temporary if the stock market returns to normal," said one purchasing manager in the retail trade field. That said, any reading above 50% indicates improving conditions.

The dollar was lower against the euro with EUR/USD last seen at 1.1207, down 0.11%.

Sterling was higher with GBP/USD last trading at 1.5169, down 0.05%.

Both commodity-exposed Aussie and loonie surged 0.38% vs the greenback with AUD/USD at 0.7066 and USD/CAD at 1.3103.

The greenback, however, maintained its gains against the Japanese yen and Swiss franc with USD/JPY up 0.23% at 120.25 and USD/CHF higher 0.49% at 0.9750.

U.S. stocks opened steeply higher on Monday, as solid gains in European and Asian markets helped extend a rally on Wall Street begun late Friday.

The S&P 500 gained 22 points, or 1.2%, to 1,974 with all 10 main sectors trading higher. Telecommunications and industrials led the gainers, while about 95% of the stocks on the index were trading higher.

The Dow Jones Industrial Average added 184 points, or 1.1%, to 16,657, with only two stocks - Apple Inc., off nearly 1% and Boeing Co. 0.1% lower. General Electric Co. was the top gainer, surging 4.1%.

The Nasdaq Composite surged 41 points, or 0.9%, at 4,749, while Russell 2000 gained 13 points or 1.2%, to 1,127.