The EUR declined against the USD and JPY after the release of mixed US data and renewed concerns about the euro zone's financial stability. These concerns pushed the EUR down from the two-week high of $1.2354 hit earlier on Wednesday.

The EUR is currently at $1.2275, compared with $1.2305 late Wednesday. The EUR also weakened to 112.06 yen from 112.83 yen. The British pound dropped to $1.4710 from $1.4819.

Investors were focused on Spain's debt woes fearing the possibility it will need to seek foreign aid, as the country is struggling with high deficits at a time of soaring unemployment, despite denials by both the European Union and the Spanish government.

While most news releases are expected from the US today, traders should follow closely the EU summit held today as the Bank of Spain plans to publish the results of stress tests carried out, providing financial markets with full insight into the stability of the country's banking system.