The euro continued its drop versus the dollar and yen on Tuesday trading after a data showing that euro zone GDP for the fourth quarter preliminary reading remained unrevised at -0.3% on the quarter, adding to worries amid the current debt crisis woes.
Data released yesterday from the euro area showed that PMI composite, which represents services and manufacturing sectors, plummeted to 49.3 in the month of February from 50.4 in January, noting that a reading above 50 means expansion and below is contraction.
On the other hand, there are worries, currently, in markets as Greece is set to know how many investors will agree to writedown debt by a deadline of March 8, where the Greek government expects 75% participation of private creditors.
Greek Finance Minister Evangelos Venizelos warned that his country may activate collective action clauses (CACs) to make private-sector bondholders bare losses if they did not agree on the debt-swap deal before a deadline of March 8, raising concerns as activating CACs would provoke an outright default.
In addition, Premier Wen Jiabao's said yesterday China slashed its 2012 growth target to 7.5%, the lowest goal since 2004.
Meanwhile, the EUR/USD pair is trading around 1.3140, after it touched a high of 1.3225, while it found support at the day's low of 1.3128.
The trading range for the day is expected among key support at 1.3000 and key resistance at 1.3330.
The U.S. dollar is currently trading near the day's high against a basket of major currencies, where the six-currency gauge, the dollar index, is hovering around 79.70 after opening trades today at 79.34.
However, against the yen, the greenback fell for a second day to trade around 80.95, where the day's high was seen at 81.57 while the low was hit at 80.76.
The trading range for the day is expectedamong key support at 80.00 and key resistance now at 83.00.
Moving to the British pound, it fell sharply versus the greenback after the British Retail Consortium said U.K. annual retail sales at stores opening at least 12 months dropped 0.3% in February after a 0.3% fall in January.
Meanwhile, the GBP/USD is trading around 1.5810 after touching a high of 1.5844 and a low of 1.5784.
The trading range for the day is expectedamong key support at 1.5600 and key resistance at 1.6000.