The euro climbed against its most major counterparts in the European session on Monday, as European stocks rose after China's central bank reduced its key interest rate for the first time in nearly two years to help support the economy.

The PBoC lowered the one-year medium lending facility rate to 2.85 percent from 2.95 percent and the 7-day reverse repo rate to 2.10 percent from 2.20 percent.

The central bank injected liquidity worth 700 billion yuan via the MLF and 100 billion yuan via reverse repos.

China's economic data was mixed with retail sales missing forecasts, but the GDP and industrial output beating expectations.

In the US, stock markets will remain closed on account of the Martin Luther King Jr. Day holiday.

The euro edged higher to 1.1434 against the greenback, 0.8360 against the pound and 130.82 against the yen, following its prior lows of 1.1400, 0.8339 and 130.23, respectively. The euro is poised to test resistance around 1.16 against the greenback, 0.86 against the pound and 133.00 against the yen.

On the other hand, the euro retreated to 1.5804 against the aussie and 1.6759 against the kiwi, after climbing to near a 4-week high of 1.5856 and a 1-week high of 1.6801, respectively in early trades. Against the franc, it pulled back to 1.0427. The next possible support for the euro is seen around 1.54 against the aussie, 1.64 against the kiwi and 1.03 against the franc.

The euro touched a 5-day low of 1.4275 against the loonie, down from a high of 1.4329 seen at 12:30 am ET. The euro is seen finding support around the 1.40 mark.

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