The dollar traded mixed to lower against most major currencies on Monday in a session void of major economic indicators, as investors locked in gains stemming from a recent rally and sold the currency for profits especially on news of an improving German business climate. The U.S. currency has seen hefty demand in recent sessions as markets prepare for U.S. monetary to tighten while Europe and Japan move in the opposite direction. In U.S. trading on Monday, EUR/USD was up 0.37% at 1.2437. The dollar softened as the euro found support on news that German business sentiment improved this month after six successive months of declines, indicating that the downturn the euro area’s largest economy may be ending. Germany’s Ifo business climate index rose to 104.7 from 103.2 in October, confounding forecasts for a decline to 103.0. The current conditions index rose to 110.0 from 108.4 last month and the expectations index improved to 99.7 from 98.3, both figures topping market forecasts. The data helped offset expectations that the European Central Bank may loosen policy further to stimulate the economy, possibly rolling out purchases of government bonds. Euro zone bond yields fell to record lows on Monday amid expectations that the ECB is moving closer to embarking on fresh stimulus measures to spur growth and inflation in the region. The yield on Spanish 10-year bonds dropped below 2% for the first time, falling to 1.97%, while the yield on Irish 10-year bonds fell to 1.48% from 1.49% late Friday. On Friday, ECB President Mario Draghi warned that inflation expectations were declining to levels that were very low and said the bank is ready to expand its stimulus program to boost inflation as quickly as possible. The ECB’s current stimulus program includes purchases of asset-backed securities and covered bonds, though markets are keeping a close eye out for plans to announce purchases of government debt, a stimulus tool known as quantitative easing. Meanwhile in the U.S., financial data firm Markit reported earlier that its flash service-sector purchasing managers index hit 56.3 in November, slightly below expectations and the lowest since April, compared with October’s final reading of 57.1. The dollar was up against the yen, with USD/JPY up 0.41% at 118.27, and down against the Swiss franc, with USD/CHF down 0.33% at 0.9668. The greenback was down against the pound, with GBP/USD up 0.28% at 1.5701. The dollar was up against its cousins in Canada, Australia and New Zealand, with USD/CAD up 0.60% at 1.1300, AUD/USD down 0.70% at 0.8612 and NZD/USD down 0.28% at 0.7860. The US dollar index, which tracks the performance of the greenback versus a basket of six other major currencies, was down 0.22% at 88.20. On Tuesday, expect investors to track U.S. economic growth data as well as a U.S. consumer confidence report.