Investing.com - The euro erased gains against the U.S. dollar on Monday, pulling away from a two-and-a-half week high as the greenback regained some strength but it still remained vulnerable ahead of the Federal Reserve's policy meeting this week.
EUR/USD pulled away from 1.1373, the pair's highest since August 26, to hit 1.1305 during U.S. morning trade, shedding 0.28%.
The pair was likely to find support at 1.1253, Friday's low and resistance at the session high.
Sentiment on the greenback remained vulnerable amid concerns that mixed U.S. economic reports and recent volatility in global financial markets will prompt the U.S. central bank to refrain from hiking interest rates on Thursday.
Data on Friday showed that the preliminary reading of the University of Michigan’s consumer sentiment index fell to 85.7 from 91.9 in July, compared to forecasts of 91.2.
Separately, the Labor Department reported that the producer price index was flat last month after a 0.2% increase in July.
Fed Chair Janet Yellen has said that an interest rate increase is data dependent but has also indicated that she expects to begin raising rates before the end of the year.
Earlier Monday, data showed that the euro zone's industrial production rose 0.6% in July, beating expectations for an uptick of 0.3%. Industrial production fell by 0.3% in June, whose figure was revised from a previously anticipated 0.4% slide.
On a yearly basis, the bloc's industrial production increased by 1.9% un July, compared to expectations for a 0.6% rise.
The euro was steady against the pound, with EUR/GBP at 0.7347.