Investing.com - The dollar fell against the euro on Monday after the International Monetary Fund cut its 2014 growth forecast for the U.S., which offset otherwise positive data out of the country's manufacturing sector.
In U.S. trading, EUR/USD was up 0.23% at 1.3573, up from a session low of 1.3513 and off a high of 1.3579.
The pair was likely to find support at 1.3512, Thursday's low, and resistance at 1.3677, the high from June 6.
The International Monetary Fund cut its 2014 U.S. economic growth forecast, pointing out that the unusually harsh winter along with a “still-struggling housing market” will drag on recovery.
The IMF said it now expects the U.S. economy to expand 2% in 2014, down from its forecast of 2.8% in April.
Elsewhere, concerns over the ongoing Sunni insurgency in Iraq continued to weigh on market sentiment on Monday by stoking fears that escalating conflict could dampen global recovery, especially if the conflict disrupts the country's oil sector.
Positive U.S. data meanwhile did little to boost the greenback.
The Federal Reserve Bank of New York reported earlier that its general business conditions index increased to 19.28 this month from 19.01 in May. Analysts had expected the index to decline to 15.0.
A separate report showed that U.S. industrial production rose by 0.6% last month, beating forecasts for a 0.5% gain.
Meanwhile across the Atlantic, Eurostat reported earlier that the euro zone's consumer price index rose 0.5% last month, in line with expectations and unchanged from a preliminary estimate. Euro zone inflation rose by 0.7% in April.
Still, the rate remains firmly below the European Central Bank's target of near but just below 2%, which capped the single currency's advance.
Elsewhere, the euro was up against the pound, with EUR/GBP up 0.12% at 0.7992, and up slightly against the yen, with EUR/JPY up 0.02% at 138.21.
On Tuesday, the ZEW Institute is to release its closely watched report on German economic sentiment, a leading indicator of economic health.
The U.S. is to produce data on housing starts, building permits and consumer prices.