FXstreet.com (Barcelona) - Euro and Pound are dropping after a rather quiet trading session during European time, as investors aexpect main European Central Banks to cut rates further from already historically low levels.

Stock markets in Europe are going through losses from 1.75% in the German Dax to 3.13% in Dutch AEX; while on the macroeconomic front, German retail sales have dropped against expectations in January, while Eurozones's consumer spending plunged in the 4Q and UK House prices continued dropping fast in February

Markets have remained in calm ahead of the day's main events, ECB and Bie Interest rate decisions, the ECB is expected to cut rates by 0.50%, to 1.0% and the BoE could trim rates to level close to 0%, according to market sources.

Euro and Pound down; USD/JPY steady

The Euro has continued depreciating as investors expect a rate cut by the ECB to be announced at 12.45 GMT, the Euro has lost around 100 pips already on its setback from 1.2660 to test support level at 1.2550, if this level breaks 1.2515 support level will come into play, once below there, 3-month low at 1.2460 would be exposed.

The Pound has weakened considerably, at the moment GBP reaches levels below 1.4090 support level on its retrace from intra-day high at 1.4233. If 1.4090/1.4100 area fails to support the Pound, support level at 1.3990 would come into play.

USD/JPY, the Dollar has remained below 99.50 for most of Thursday's European session, an attempt above here has been rejected at 99.70. The Dollar is launching another assault to the 99.50 resistance area on its way to 100.00 psychological level.