Investing.com - Better-than-expected U.S. retail sales sent the
euro falling against the dollar on Monday, mainly by rekindling
expectations that the economy is growing stronger and may soon
stand on its own without Federal Reserve stimulus measures to
In U.S. trading on Monday, EUR/USD was down 0.07% at 1.2981, up
from a session low of 1.2941 and off from a high of 1.2999.
The pair was likely to find support at 1.2936, Friday's low, and
resistance at 1.3194, Wednesday's high.
The Commerce Department reported earlier that U.S. retail sales
rose 0.1% in April, defying expectations for a 0.3% decline.
March's figure was revised down to a 0.5% contraction from a 0.4%
Core retail sales, which exclude automobile sales, fell by 0.1%
last month, in line with expectations.
The numbers sparked talk that the Federal Reserve may be closer to
scaling back stimulus programs, especially its USD85 billion
monthly bond-buying program, which weaken the dollar to spur
The euro continued to come under pressure after Italy reported on
Friday that industrial output dropped 0.8% in March after
contracting 0.9% in February.
Analysts were expecting a 0.2% contraction in output at the
country's factories, mines and utilities.
Talk that the European Central Bank won't rule out cutting its
deposit rate into negative territory kept the single currency lower
The euro, meanwhile, was up against the pound and up against the
yen, with EUR/GBP trading up 0.43% at 0.8490, and EUR/JPY trading
up 0.18% at 132.25.
On Tuesday, the ZEW Institute is to release its closely watched
report on German economic sentiment, a leading indicator of
economic health. The eurozone is to release official data on
industrial production. Meanwhile, the eurozone's Economic and
Financial Affairs Council is to hold talks in Brussels.
The U.S. is to publish official data on import prices.
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