The European currency showed mixed performance against its major counterparts on Wednesday's European session, ahead of the European Central Bank monetary decision tomorrow.
While the euro advanced against the franc and the pound, it pared gains against the greenback and the yen.
At its monetary policy meeting in Frankfurt, the central bank is likely to leave the benchmark refi rate unchanged at a record low 0.75 percent for an eighth consecutive month.
The ECB decision will be accompanied by a press conference of President Mario Draghi rendering his comments about monetary outlook. Draghi is likely to discuss rate cuts with major economic indicators pointing to no let up in the ongoing economic downturn, at least in the near term.
The latest figures from Eurostat confirmed that the Eurozone economy contracted 0.6 percent quarter-on-quarter in the fourth quarter, indicating the steepest rate of contraction since the first quarter of 2009.
The euro spiked higher against the franc, touching a 9-day high of 1.2321. The euro may find next immediate resistance around 1.235 level. The pair ended Tuesday's deals at 1.2281.
The single currency that finished yesterday's deals at 0.8630 against the pound hit a 2-day high of 0.8651. If the euro extends gain, it may find target around 0.87 level.
UK House prices increased in February, rebounding from a decline in the previous month, a report from Lloyds Banking Group's Halifax division showed today.
The house price index rose 0.5 percent month-on-month, whereas it rose 1.9 percent on year.
The euro pared gains against the yen after touching a 5-day high of 122.10. The euro-yen pair is now trading around Tuesday's close of 121.77.
The euro fell to 1.3025 per dollar, down 0.36 percent from its early high of 1.3072. The euro-greenback pair traded 1.3052 at yesterday's close. The euro may find support around 1.295 level.
In the American session, U.S. ADP employment data for February, factory orders for January and the Federal Reserve's Beige Book are scheduled for release.
