Investing.com - The euro slid against the dollar on Monday after data revealed U.S. retail sales beat expectations last month, driving hopes that U.S. recovery may be gaining steam after a rough winter disrupted commerce.
In U.S. trading, EUR/USD was down 0.48% at 1.3819, up from a session low of 1.3808 and off a high of 1.3863.
The pair was likely to find support at 1.3673, the low from April 4, and resistance at 1.3905, Friday's high.
The Commerce Department reported earlier that U.S. retail sales rose 1.1% in March, exceeding expectations for a 0.8% gain. Retail sales in February were revised up to a 0.7% increase from a previously estimated 0.3% rise.
Core retail sales, which exclude automobiles, rose 0.7% last month, beating expectations for a 0.5% reading, after a 0.3% gain in February
Consumer demand drives the bulk of U.S. economic output, and the numbers fueled expectations that the Federal Reserve will continue to wind down its monthly asset-purchasing program as the year unfolds.
Fed asset purchases, currently standing at $55 billion a month, weaken the greenback by suppressing borrowing costs to spur recovery, though talk of waning monetary intervention often strengthens the U.S. currency.
Elsewhere in the U.S., data revealed U.S. business inventories rose less than expected.
In a report, Census Bureau reported earlier that U.S. business inventories rose 0.4% in February from 0.4% in the preceding month.
Analysts were expecting a 0.5% reading in February.
Meanwhile across the Atlantic, the euro slid after ECB President Mario Draghi said Saturday that further gains in the euro would trigger additional monetary easing to keep consumer prices in comfort zones.
"A strengthening of the exchange rate requires further monetary stimulus. That is an important dimension for our price stability," he said.
ECB governing council member and Bank of France governor Christian Noyer said Monday that a weaker euro is desirable, adding that the stronger the currency is the more "accommodating" monetary policy needs to be.
Elsewhere, investors shrugged off data showing that industrial production in the euro area rose 0.2% in February from a month earlier, pushing the annual rate up to 1.7%.
Market expectations had been for an annual gain of 1.5% and a monthly increase of 0.2%.
The euro was down against the pound, with EUR/GBP down 0.50% to 0.8258, and up against the yen, with EUR/JPY down 0.24% at 140.78.
On Tuesday, the ZEW Institute is to release its closely watched report on German economic sentiment, a leading indicator of economic health.
In the U.S. later Tuesday, Fed Chair Janet Yellen is to speak; her comments will be closely watched.