European session:

The euro weakened against the dollar after demand declined at a Spanish bond auction, adding to concern the region is struggling to overcome its sovereign debt crisis.

Europe’s shared currency fell to a three-week low against the yen as the European Central Bank kept its main refinancing rate at a record low 1 percent.

The auction was the first since Budget Minister Cristobal Montoro presented the government’s spending plans on March 30 and said public debt will rise to a record 79.8 percent of gross domestic product even as the nation makes the deepest cuts in three decades.

Spanish 10-year bond yields rose as much as 26 basis points to a 12-week high of 5.71 percent. The Stoxx Europe 600 Index (SXXP) dropped 1.1 percent.

The ECB’s decision to leave the refinancing rate unchanged was forecast by all 57 economists in a Bloomberg News survey. ECB President Mario Draghi will hold a press conference at 12:30  GMT to explain the decision.

EUR/USD: the pair fell in $1,3150 area.

GBP/USD: the pair decreased in $1,5860/50.

USD/JPY: the pair showed low in Y82,10 area, but slightly receded later.

US data continues at 1400GMT when the ISM non-manufacturing index is forecast to fall to a reading of 57.0 in March after rising in the previous month. The weekly EIA crude oil stocks data is also due, at 1430GMT. At 1500GMT, San Francisco Fed President John Williams speaks to a San Francisco Planning and Urban Research business breakfast.