The euro came under pressure in early European deals on Thursday, as service sector activities across the euro region slowed more than initially estimated in February. Traders focus on the European Central Bank's 2-day meeting starting today for more details about the execution of quantitative easing program, which begins this month.

The ECB policy setting meeting in Cyprus and President Mario Draghi's press conference will be closely watched for additional features of €60 billion-per-month asset purchase program that was unveiled in January. Till now, the ECB has only said that the government bond purchases will start sometime this month, and run through at least September 2016.

The ECB officials have previously told that they would buy government bonds in line with the central bank's capital key.

The bank is unlikely to unveil new policy measures, retaining main refinancing rate unchanged at 0.05 percent.

The Eurozone private sector expanded at a slower than initially estimated pace in February, survey data from Markit Economics showed.

Although the services Purchasing Managers' Index rose to a 7-month high of 53.7 in February, it was below 53.9 estimated on February 20.

The composite output index rose to 53.3 in February, compared to flash score of 53.5.

Separate data showed that Germany's final services activity rose to a 5-month high of 54.7 in February, slower than the flash score of 55.5. The composite PMI also came in weaker-than-expected at 53.8 in February.

Italy's service sector activity stagnated unexpectedly in February after expanding in the previous month, another data from Markit Economics showed.

The headline Markit/ADACI services Purchasing Managers' Index decreased to 50 in February from 51.2 in January. Economist had forecast the index to increase to 51.4.

In Spain, the headline services purchasing managers' index edged down to 56.2 in February from 56.7 in January, less than the consensus estimate of 56.6.

The euro depreciated to 132.92 against the Japanese yen for the first time since February 5. The euro is likely to find support around against the 132.00 zone.

The euro hit 1.1114 against the U.S. dollar, its lowest since January 26, when it hit more than 11-year low. Continuation of downtrend may drive the euro down to a support around the 1.10 mark.

The euro gave back early gains against the franc, trading at 1.0702. The next key support for the euro-franc is possibly found near the level.

The single currency fell to more than 7-year low of 0.7235 against the Sterling at 4:10 am ET, before recovering a bit in a short while. At yesterday's close, the pair was worth 0.7268.

The U.K. service sector expansion slowed unexpectedly in February, survey data from Markit showed.

The Markit/Chartered Institute of Purchasing and Supply Purchasing Managers' Index for the service sector decreased to 56.7 in February from 57.2 in January. The score was forecast to rise to 57.5.

The 19-nation currency drifted lower to a record low of 1.4662 against the NZ dollar, down from Tuesday's closing value of 1.4797. Against the aussie, the euro slipped to a 5-week low of 1.4197. On the downside, 1.41 is seen as the euro's next support level against the aussie.

The euro eased to 1.3909 against the Canadian dollar, from an early high of 1.3976. The euro may locate downside target around the 1.38 area.

Looking ahead, Markit's U.S. PMI, ISM U.S. non-manufacturing PMI and private sector employment report - all for February are slated for release in the New York session.

At 9:00 am ET, U.S. Federal Reserve Bank of Chicago President Charles Evans will deliver a speech about the economic outlook and monetary policy at the Lake Forest-Lake Bluff Rotary Club 2015 Economic Breakfast in Lake Forest.

Around 45 minutes later, Bank of England's Deputy Governor Andrew Bailey is expected to speak on currency at Treasury Committee Hearing, U.K.

The Bank of Canada will announce its interest rate decision at 10:00 am ET. Economists expect the bank to retain interest rates unchanged at 0.75 percent.

At 2:00 pm ET, U.S. Federal Reserve releases Beige Book report.

Euro vs Sterling (FX:EURGBP)
Forex Chart
From Mar 2024 to Apr 2024 Click Here for more Euro vs Sterling Charts.
Euro vs Sterling (FX:EURGBP)
Forex Chart
From Apr 2023 to Apr 2024 Click Here for more Euro vs Sterling Charts.