EUR/USD trimmed recent bullish momentum, declining by one-half of one percent on Monday. Fiber declined in one of its worst trading days in the second half of the year after pan-EU Purchasing Managers Index (PMI) figures broadly missed expectations, while the US PMI data print faired only slightly better.

Bitcoin was the notable mover as it reached for one-month highs on Monday, sustaining its rally after the Federal Reserve's super-sized rate cut last week, while the yen and most other major currencies stagnated with Japanese markets on holiday.

The reduction, to 3.5 percent from 3.75 percent, comes as inflation has slowed and the bank faces pressure to bolster the region’s flagging economy.

With inflation subsiding, the European Central Bank is cutting its benchmark interest rate to prop up tepid growth with lower borrowing costs for companies and home buyers.

European shares closed higher on Monday as a soft business activity reading strengthened the case for more monetary policy easing by the European Central Bank this year, with rate-sensitive sectors such as real estate and utilities rising.

The profitability of Europe’s top banks hit a record high just as the European Central Bank cut interest rates for the first time in almost five years.