The euro climbed against its major rivals in the European session on Monday, after the German Chancellor Angela Merkel remarked that the euro is too weak primarily due to extremely loose monetary policy pursued by the European Central Bank.

While speaking in Berlin, Merkel said that the weak currency coupled with low oil prices are key drivers of Germany's large trade surplus.

"The euro is too weak - and that's because of ECB policy - and so German products are cheap in relative terms," she told.

Merkel's comments raised speculation that Germany is likely to push hard for a tightening of its monetary policy rhetoric this year.

Meanwhile, Eurogroup finance ministers are meeting today to consider disbursement of the bailout funds and discuss debt relief to Greece after the country's parliament approved pension cuts and tax hikes sought by its international lenders to unlock vital financial aid.

In its monthly report, the Bundesbank said that Germany's strong growth is likely to continue in the spring.

In the first quarter, the economy expanded 0.6 percent, following the fourth quarter's 0.4 percent growth.

The euro showed mixed performance in the Asian session. while the euro climbed against the yen and the pound, it held steady against the franc. Against the greenback, it fell.

The euro advanced to a 6-1/2-month high of 1.1246 against the greenback, near 2-month high of 0.8650 against the pound and a 5-day high of 125.30 against the yen, off its early lows of 1.1161, 0.8600 and 124.12, respectively. The euro is poised to locate resistance around 1.14 against the greenback,0.88 against the pound and 128.00 against the yen.

The euro rebounded to 1.0909 against the franc and 1.6153 against the kiwi, from its early low of 1.0882 and a 4-day low of 1.6053, respectively. The next possible resistance for the euro is seen around 1.11 against the franc and 1.64 against the kiwi.

The euro climbed to a 4-day high of 1.5071 against the aussie, after having fallen to 1.4965 at 3:30 am ET. Continuation of the euro's uptrend may see it challenging resistance around the 1.53 mark.

Reversing from an early 5-day low of 1.5085 against the loonie, the euro edged up to 1.5186. Further uptrend may see the euro challenging resistance around the 1.53 region.

Meanwhile, the U.S. dollar was hammered by the Fitch report, which cautioned that the sharp escalation in trade-protectionism remains a key risk for the world economy. As the U.S. policy makers are continuously focused on reducing bilateral trade deficits, there remains a possibility of hypothetical trade war leading to adverse outcomes in all major economies, the agency noted.

The greenback dropped to a 6-1/2-month low of 0.9699 against the Swiss franc, from its early high of 0.9766. The greenback is likely to target support around the 0.95 area.

The greenback retreated to 1.3015 against the pound, from its previous high of 1.2966. The greenback is seen finding support around the 1.32 area.

The greenback eased to 1.3499 against the loonie, its lowest since April 25. If the greenback falls further, it may target 1.34 as the next support level.

The greenback slipped to near a 3-week low of 0.7474 against the aussie and near a 4-week low of 0.6972 against the kiwi, off its early highs of 0.7429 and 0.6914, respectively. On the downside, 0.76 and 0.72 are likely seen as the next support levels for the greenback against the aussie and the kiwi, respectively.

Looking ahead, at 10:00 am ET, Philadelphia Fed President Patrick Harker speaks about the link between physical and economic well being at the Jefferson College of Health Professionals, in Philadelphia.

Minneapolis Fed President Neel Kashkari gives brief welcome remarks before the first conference of the Opportunity and Inclusive Growth Institute in Minneapolis at 10:30 am ET.

At 1:30 pm ET, the Reserve Bank of Australia Deputy Governor Guy Debelle delivers a speech titled "How I Learned to Stop Worrying and Love the Basis" at the Bank of International Symposium, in Basel.

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