The euro traded lower in a lackluster 33 pip range, holding at the 1.2990 support line against the dollar on extended gains from the better-than-expected U.S. Employment data from Friday. The Fitch rating agency's downgrade of Italy on Friday added weight to the single currency.
Fitch cut Italy’s debt rating by one notch and gave it a negative outlook late on Friday, citing the current political uncertainty, a protracted recession and high levels of debt. The downgrade of Italy pushed the European stocks lower while China reported a weak factory output and consumer demand.
Euro Stoxx is lower by -20.58 points to 2,707.89 (-0.75%) while DAX is lower by -28.59 points to 7,957.77 (-0.36%) as of 11:00GMT.
Over the weekend, China reported their annual industrial production for January and February combined was 9.9 percent, the lowest level since October 2012 while its consumer price index rose more than expected last month.