The euro remains under pressure for a second day ahead of EU summit two-day meeting starting on Thursday.
While some expected the meeting to tackle the issue of expanding the European permanent rescue fund to combat debt crisis, especially after the rejection of G20 nations to boost IMF resources before seeing expansion in euro area's firewall, Jean-Claude Junker, Eurogroup President, said on Wednesday the summit will not include discussions of expanding the European lifeline, revealing that some European Parliaments have not finished their work on this issue.
Instead, the meeting will focus mainly on Greece's reform actions demanded by the EU and IMF to become eligible for receiving a second bailout worth 130 billion euros. They will review the progress is the debt swap deal reached with private-sector bondholders last week.
Moreover, the EU Commission's announcement that Ireland needs further spending cuts added to worries that Ireland may track Greece in asking for another bailout.
On the other hand, fundamentals from the euro area released today added to worries. European manufacturing recorded contraction for the seventh consecutive month as PMI manufacturing showed a contraction of 49.0 from 48.8 in January, while unemployment soared to a new high of 10.7% in January from a revised of 10.6% in December.
Meanwhile, the EUR/USD pair is trading around 1.3325, near the day's opening level, after it touched a high of 1.3303, while the day's high was recorded at 1. 1.3355.
The trading range for today is among key support at 1.3110 and key resistance at 1.3625.
The U.S. dollar, on the other hand, fell slightly a against a basket of major currencies after yesterday's advance as it retreated to 78.75 after touching a low of 78.62, according to the six-currency gauge the dollar index.
Against the yen, the greenback dropped on the daily basis to trade around 81.00, where the day's high was seen at 81.38 while the low was touched at 80.81.
The trading range for today is among key support at 78.60 and key resistance now at 82.05.
Later in the day, eyes will be on U.S. ISM manufacturing which is expected to show a widening expansion to 54.5 in February from a prior of 54.1.
Moving to the British pound, it rose for the third day to three-month high versus the greenback as a daily closing above SMA 200 around 1.5820 levels paved the way for further advance today.
Data from the U.K. released on Thursday showed that the manufacturing sector recorded narrowing expansion in February to 51.2 from a revised of 52.0 a month earlier.
Meanwhile, the GBP/USD is trading around 1.5945 after touching a high of 1.5955 and a low of 1.5894.
The trading range for today is among key support at 1.5730 and key resistance at 1.6165.