The 17-nation currency rebounded to pare earlier drop and two days of decline ahead of the EU two-day Summit starting on Thursday in Brussels to set measures to face future debt crisis.

Earlier this week, European Finance Ministers agreed to make the European Stability Mechanism able to lend 500 billion euros with capital base of 700 billion euros, where loans will be provided at lower interest rate than those offered by the EFSF.

These measures is supposed to calm down markets, but other news are raising concerns as today Moody's downgraded the senior debt and deposit ratings of 30 Spanish banks with negative outlook for most banks and yesterday Portugal became close to accepting a bailout after the Portuguese opposition voted against deficit-cut plan which forced Portuguese Prime Minister Jose Socrates to tender his resignation, putting the country at the verge of a political problem.

With regard fundamentals, European manufacturing's gauge slipped to 57.7 in March relative to the prior 59.0, while the services index rose to 56.9 from the preceding 56.8.

On the other hand, Ireland contracted 1.6% in the fourth quarter of last year from 0.6% expansion in the three months ending September.

Concerning the euro-dollar pair, it rebounded after falling to a low of 1.4051, where 1.40 remains as key support, to trade at 1.4130 while the day's high was recorded at 1.4149.

The trading range for today is among the key support at 1.3940 and the key resistance at 1.4365.

The British pound versus the dollar continued its drop for the second day after a report showing that UK retail sales with auto fuel dipped 0.8% compared with the revised 1.5% and median estimates of -0.6%.

The pair slipped to touch a low of 1.6147 after reaching a high of 1.6266 to trade around 1.6163, where the trading range for today is among the key support at 1.6105 and the key resistance at 1.6450.

With regard to the dollar-yen pair, it is showing slight decline on the daily charts where it is currently trading at 80.88 after recording a high of 81.05 and a low of 80.77.

The trading range for today is among the key support at 79.00 and the key resistance at 81.80.