Investing.com - The euro continued to trade near 11-month lows against the U.S. dollar on Monday, as markets shrugged off data showing that U.S. new home sales data rose far less than expected last month.
EUR/USD hit 1.3184 during U.S. morning trade, the pair's lowest since September; the pair subsequently consolidated at 1.3202, shedding 0.29%.
The pair was likely to find support at 1.3105 and resistance at 1.3297, Friday's high.
In a report, the U.S. Commerce Department said new home sales dropped by 2.4% to 412,000 units last month, compared to expectations for an increase of 5.7% to 430,000.
New home sales in June were revised up to 422,000 units from a previously reported 406,000 units.
Earlier Monday, the German research institute Ifo said its Business Climate Index fell to a more than one-year low of 106.3 this month, below forecasts for 107.0 and down from a reading of 108.0 in July.
The weak data dampened optimism over the health of the euro zone’s largest economy.
The single currency had also weakened after European Central Bank President Mario Draghi said on Friday that the central bank is ready to take more unconventional action if needed to stimulate a sluggish euro zone economy.
Mr. Draghi was speaking at the Fed's annual meeting of top central bankers and economists in Jackson Hole, Wyoming.
Federal Reserve Chair Janet Yellen said at the Jackson Hole gathering that the U.S. economy is recovering and added the labor market is improving as well.
The comments highlighted the view that the paths of euro zone and U.S. monetary policies are diverging.
The euro was also lower against the pound, with EUR/GBP declining 0.43% to 0.7958.