By Matt Day Of DOW JONES NEWSWIRES NEW YORK (Dow Jones)--Copper futures eased Thursday, tracking a decline in the euro as investors worried that the debt crisis there could rattle the industrial economy and curb demand for metals. The euro fell Thursday to the lowest level since September 2010. Overnight deposits with the European Central Bank reached a fresh record high Wednesday, a sign of increased concerns over the availability of cash in the currency union. Meanwhile, worries mounted that though Hungary doesn't use the European common currency, deepening strain in its financial system could take a toll on already weakened euro-zone banks. The most actively traded copper contract, for March delivery, was recently down 2.45 cents, or 0.7%, at $3.41 a pound on the Comex division of the New York Mercantile Exchange. Copper is used in everything from plumbing and wiring to automobiles and electronics, making prices sensitive to the global economic outlook. "We are experiencing more Euro-sourced angst today," INTL FCStone analyst Edward Meir said in a note, adding that the currency's weakness was weighing on metals and energy markets. Crude oil, another closely watched industrial benchmark, was recently 0.5% lower on Nymex. Futures initially pared their earlier losses after a pair of better-than-expected readings on the U.S. labor market, but the support was fleeting. The private sector added 325,000 jobs in December, according to Automatic Data Processing's monthly report, well above economists' expectations for a gain of 175,000 and the latest sign that the long-struggling labor market in the world's largest economy was recovering. In a separate report, the Labor Department said the amount of people seeking new unemployment benefits in the U.S. last week fell by more than analysts had forecast. The four-week average of new jobless claims, which offers a less volatile picture than weekly figures, decreased to the lowest level since June 2008. Copper futures rallied to their highest point since Dec. 9 on Tuesday, as strength in manufacturing data out of the U.S. and China lifted demand hopes. Despite the upbeat readings on the U.S. and China, analysts said the metal's fortunes would also likely remain tied to investor perception of Europe's debt crisis. Commerzbank on Thursday lowered its 2012 base metal price forecasts, citing expectations for political and economic risks. The bank sees benchmark copper prices on the London Metal Exchange averaging $8,550 a ton this year, or $3.87 a pound, down 2% from its previous forecast. -By Matt Day, Dow Jones Newswires; 212-416-4986; matt.day@dowjones.com

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