The euro was seen on a unpleasant note as the currency slipped on technical factors, with some investors betting the recent move was too far, too fast. The currency was supported by strong German factory data, a positive US jobs report and more clarity on european bank stress tests.
Vassili Serebriakov, a currency strategist at Wells Fargo Bank in New York said: "The euro tested but did not break technical resistance levels overnight and has subsequently give up a share of its recent gains. While there have not been any obvious catalysts for the euro’s pullback this morning, the speed of the move suggests the underlying sentiment on the currency remains negative."
The euro traded down 0.4 percent at $1.2637. The US dollar traded down at C$1.0334. Against the yen, the euro was at 112.69 yen. The dollar was up 0.3 percent at 88.64 yen.