The euro plunged from one-week high against the green currency after German bond auction and inflation data.
Germany auctioned 4.06 billion euros of government bonds out of 5 billon euros offered, where bids were 1.3 times compared with 1.1% at the previous auction. The yield on the 10-year bonds retreated to 1.93%, the lowest over the past five years, from 1.98% in November's auction.
Portugal also sold as much as 1 billion euros of three-month notes today on lower yields, which have dropped to 4.346% compared with 4.873% yields recorded an auction earlier.
On the other hand, inflation data raised speculations the ECB will accelerate the process of cutting interest rate, putting downside pressure on the euro, as inflation retreated from three-year high of 3.0% to 2.8%, in line with median estimates, according to CPI flash estimate for the year ended December.
Other data from the euro area showed that PMI composite signaled a contraction in manufacturing and services for the fourth month to 48.3, yet it came higher than both forecasts and preliminary readings of 47.9.
Concerning the EUR/JPY pair, it remained near 11-year low the daily charts to trade around 99.54 after recording a high of 100.24 and a low of 99.49.
The trading range for the day is expected among the key support at 97.40 and the key resistance at 101.80.
For the dollar index, which tracks the dollar movements versus a basket of major currencies, it rebounded after days of decline to touch a high of 80.02 compared with the day's starting level of 79.63.
Later in the day, U.S. factory orders will probably show 2.0% rise in November from the prior 0.4% drop.
Also, the green currency advanced against the franc to trade around 0.9387 after recording a high of 0.9396 and a low of 0.9312.
The trading range for today is among the major support at 0.9235 and the major resistance at 0.9520.
Moving to the GBP/USD pair, it showed a drop despite the improvement in construction and mortgage approvals data as it followed the general sentiment in the market.
The pair is currently hovering around 1.5607 while recording a high of 1.5668 and a low of 1.5591.
The trading range for today is among key support at 1.5360 and key resistance at 1.5880.