Investing.com - The euro erased losses against the U.S. dollar on Monday, after upbeat U.S. industrial production data lent support to market sentiment, although a euro zone inflation report released earlier in the session limited gains.
EUR/USD pulled away from 1.3880, the pair's lowest since March 14, to hit 1.3930 during U.S. morning trade, adding 0.12%.
The pair was likely to find support at 1.3847, the low of March 14 and resistance at 1.3966, the high of March 13 and a two-and-a-half year high.
Data showed that U.S. industrial production rose 0.6% in February, exceeding expectations for a 0.1% gain. Industrial production in January was revised to a 0.2% fall from a previously estimated 0.3% decline.
In a separate report, the Federal Reserve Bank of New York said its Empire State manufacturing index ticked up to 5.6 this month, from a reading of 4.5 in February, confounding expectations for a rise to 6.
In the euro zone, official data earlier showed that consumer price inflation rose 0.3% last month, below expectations for a 0.4% increase, after a 1.1% decline in January.
Year-on-year, consumer price inflation rose 0.7% in February, compared to expectations for a 0.8% increase, after a 0.8% gain in January.
Core consumer price inflation, which excludes food, energy, alcohol, and tobacco, rose 0.5% in February, after a 1.7% fall the previous month.
Meanwhile, investors continued to monitor events in Europe, after over 90% of Crimean voters on Sunday chose to break with Ukraine and join Russia. Crimea's Parliament on Monday formally asked to join the Russian Federation.
European Union foreign ministers imposed travel bans and asset freezes on 21 people they have linked to the push to have Crimea secede from Ukraine to maybe be annexed by Russia. U.S. President Barack Obama also imposed sanctions on Russian officials involved in the incursion of Crimea.
The euro was fractionally higher against the pound, with EUR/GBP edging up 0.08% to 0.8365.