Euro Drops Against Most Majors

The euro weakened against the other major currencies in the early European session on Friday, as the yields on bonds issued by Portugal, Italy and Spain sank after European Central Bank detailed its massive quantitative easing program set to start next week.

Yields on 10-year bonds issued by Portugal, Italy and Spain fell to record lows. The benchmark 10-year yields of Portugal, Italy and Span was around 1.76 percent, 1.27 percent and 1.19 percent respectively.

ECB President Mario Draghi revealed on Thursday that the bank will purchase $66.3 billion worth of bonds each month beginning on March 9 and expects the impact from it stimulus measures to return inflation to the euro area next year. The central bank previously indicated that the $1.1 trillion asset purchase program is expected to continue until September of 2016.

At its monetary policy meeting, the ECB maintained its interest rates unchanged for a fifth consecutive session. The ECB also raised its forecast for European economic growth in 2015 to 1.5 percent from 1 percent.

Traders await the U.S. Labor Department's jobs data for February to be released shortly. Economists expect the job growth to fall to 240, 000 in February from 257,000 in January, while the unemployment rate is forecasted to drop 5.6 percent from 5.7 percent.

In the early European trading, the euro fell to more than a 11-year low of against the U.S. dollar, from an early high of 1.1239. On the downside, 1.03 is seen as the next support level for the euro.

Against the pound, the euro slipped to 0.7211 for the first time since December 2007. This may be compared to an early high of 0.7238. The euro is likely to find support around the 0.71 area.

The euro dropped to near 1-1/2-month lows of 131.72 against the yen and 1.4063 against the Australian dollar, from early highs of 132.54 and 1.4179, respectively. If the euro extends its downtrend, it is likely to find support around 130.11 against the yen and 1.37 against the aussie.

Against the Canadian dollar, the euro fell to 1.3688 for the first time since September 2013 from an early high of 1.3776. The euro may test support near the 1.35 region.

Looking ahead, U.S. jobs data for February, trade balance and consumer credit - both for January and Canada trade data for January are set to be published in the New York session.

At 1:30 pm ET, U.S. Federal Reserve Bank of Dallas President Richard Fisher will deliver a speech on "State of the Economy and Farewell, Dallas" before a Dallas Regional Chamber luncheon.