EUR dropped against most of its major rivals in the European session on Monday, as investors were disappointed by a weaker-than-expected reading of business sentiment in Germany.

Germany's Ifo institute reported its Business Climate Index edged up to 96.8 points in April from 96.6 points in the previous month. This was the highest reading since June 2019, but missed economists' forecasts of 97.8, as respondents noted the impact of the third wave of infections and supply-chain bottlenecks. The survey revealed that sentiment improved among manufacturers and traders, but deteriorated among service providers and constructors.