Forex Pros - The euro fell to a six-day low against the U.S. dollar on Thursday, after credit agency Moody's cut Spain's rating and amid concerns over how the euro zone will handle the debt crisis affecting its peripheral nations.
EUR/USD hit 1.3805 during European late morning trade, the pair's lowest since March 2; the pair subsequently consolidated at 1.3828, shedding 0.56%.
The pair was likely to find support at 1.3710, the low of February 28 and resistance at 1.3940, Wednesday's high.
Earlier in the day, Moody's downgraded Spain's sovereign debt to Aa2 from Aa1 with a negative outlook and warned of further cuts, saying plans to bail out the country's banking sector will cost more than twice what the government expected and add to the country's debt load.
Moody's pointed out however, that the country's debt sustainability was not under threat and commended the government's efforts in addressing fiscal issues.
European heads of state were due to hold a summit meeting on Friday, to discuss the response to the debt crisis but were not expected to make significant headway on enlarging the lending capacity of the European Financial Stability Facility.
The euro was also down against the pound, with EUR/GBP shedding 0.33% to hit 0.8553.
Later in the day, the U.S. was to publish a key weekly report on initial jobless claims as well as data on the country's trade balance.