Investing.com -- The euro continued its steady depreciation against the U.S. dollar on Monday moving close to a 12-year low, as tensions between Greece and its creditors remained high and ahead of a flurry of key U.S. economic data later this week.
EUR/USD lost 0.0034 or 0.32% to 1.0567 as the pair resumed its push toward parity. The pair slipped below 1.06 in European morning trading and fell to a daily-low of 1.0522 just before the start of U.S. morning trading before rebounding throughout the session.
The pair likely received support at 1.05 its low from Mar. 11 and resistance at 1.10 the high from April 3.
Analysts, investors and policymakers are closely monitoring a number of critical economic indicators over the next few days, following the release of several figures last week that could mostly be construed as disappointing. Economists expect a slight uptick of 1.1% in this week's U.S. Retail Sales Report, as well as a modest increase in the Producer Price Index, both of which are being released on Tuesday.
Analysts, however, have forecasted a 0.3% decline in industrial production from last month and are bracing for a decline in housing starts for March, after the figure dropped sharply by 17% a month earlier. Policymakers also await the release of the Consumer Price Index for the month of March on Friday for a gauge on inflation.
Last month, Federal Reserve chair Janet Yellen indicated that she would like to see inflation move toward its target goal of 2% before the Fed decides on the timing of its first interest-rate hike in more than five years. The index rebounded 0.2% in February, after declining sharply by 0.7% a month earlier.
Continued bearish economic data could fuel expectations for a delay in raising rates.
In addition, the European Central Bank is expected to make key rate and monetary policy decisions at a Governing Council meeting on Wednesday. ECB president Mario Draghi is expected to make his first public comments on the euro zone's bond buying program at a press conference following the meeting.
On Monday, yields on 10-year Germany bunds moved near negative territory ahead of the meeting.
Elsewhere, Greece is reportedly formulating a plan for how it could potentially emerge from a default on its sovereign debt if it is unable to reach an agreement that could unlock critical aid from its euro zone creditors. If the sides cannot agree on a deal before Greece's next payment to the International Monetary Fund, Athens is prepared to withhold up to €2.5 billion of its expenditures, according to the Financial Times.