Euro declined in European trade on Friday against a basket of major rivals, sharpening losses for the fourth straight session against the dollar and plumbing five-week lows amid thin trading due to the Good Friday holiday.
Euro is heading for a quarterly loss, the second in the three quarters due to concerns about the widening policy gap between Europe and the US.
Such remarks boosted the odds of a June interest rate cut by the ECB, with investors now expecting 90 basis points of total interest rate cuts by the ECB this year.
Following the excellent data, the odds of a 0.25% Fed interest rate cut fell from 63% to 59%.
The EUR/USD pair is down 2.5% so far this quarter, on tracking for the second quarterly loss in three quarters.
The eurozone-US interest rate gap currently stands at 100 basis points in favor of the US, however it could increase to 125 basis points in June if the ECB went ahead with cutting rates and the Fed held its ground, which would put the euro in a weak position.