Investing.com - The euro trimmed gains against the dollar on Monday after industry data revealed that pending U.S. home sales rose for the first time in nine months, which sparked demand for the greenback.
In U.S. trading, EUR/USD was up 0.07% at 1.3843, up from a session low of 1.3792 and off a high of 1.3880.
The pair was likely to find support at 1.3792, the earlier low, and resistance at 1.3905, the high from April 11.
The dollar received a shot in the arm after the National Association of Realtors reported that pending home sales jumped 3.4% in March, far surpassing expectations for a 1% gain.
Pending home sales for February were revised to a 0.5% drop from a previously reported decline of 0.8%.
On a year-over-year basis, pending home sales were still down 7.9% in March, though the data firmed the dollar by reminding investors that the Federal Reserve will continue tapering monthly asset purchases as the year unfolds.
The euro, meanwhile, continued to see support from expectations that euro zone inflation data due out on Wednesday will reveal an uptick in consumer prices.
An increase in the euro zone’s consumer price index would ease pressure on the European Central Bank to implement additional monetary policy measures.
In March, the euro zone''s annual inflation rate slowed to 0.5%, the lowest since November 2009. The ECB targets an inflation rate of close to but just under 2%.The consensus forecast is for the inflation rate to rise to 0.8%.
The euro was up against the pound, with EUR/GBP up 0.02% to 0.8236, and up against the yen, with EUR/JPY up 0.38% at 141.90.
On Tuesday in the euro zone, Germany is to release preliminary data on consumer price inflation and a report by market research group Gfk on consumer climate, while Spain is to release data on the unemployment rate.