Concerns about the reduced pace of development and growth in the euro zone's largest economy tugged down the shared currency of the European Union on Monday, Reuters reports.
The 18-nation monetary unit initially advanced against the U.S. dollar as the trade week began but economic data noting private sector growth in Germany slowed this month impacted the performance of the euro. The shared currency initially advanced after economic data indicated business activity in France rapidly developed this month.
"It was a very mixed bag with France beating expectations (and)… Germany coming in below forecasts," Currency Strategist Alvin Tan with Societe Generale told Reuters on Monday. "It doesn't look like that the ECB will do anything. So the next leg in the euro/dollar pair has to come from the dollar's side. And for that we need U.S. data to outperform and investors to price in expectations of Fed rate hikes."
The euro climbed from its lowest value in about 14 days against the greenback early during the trade session.
Bloomberg reports President Mario Draghi with the European Central Bank forecast the regional economy to continue recovering from the sovereign debt crisis.
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