Eurozone retail sales declined unexpectedly in January on non-food and auto fuel sales, official data showed on Thursday. Retail sales registered a monthly drop of 0.3 percent, confounding expectations for an increase of 0.1 percent. The statistical office revised up retail sales for December to nil growth from the initial estimate of 0.2 percent fall.

Turkey's central bank lowered its benchmark rate for the third straight time on Thursday as the underlying trend of inflation softened. The Monetary Policy Committee, headed by Yasar Fatih Karahan, decided to reduce the policy rate to 42.5 percent from 45.0 percent, as widely expected. The bank had reduced the rate by 250 basis points each in December and January.

The Japanese yen strengthened against other major currencies in the European session on Thursday, in reaction to the Bank of Japan's (BoJ) hawkish monetary policy outlook. Additionally, concerns about a worsening global trade war are driving up demand for safe haven currency like JPY.

The UK construction sector registered the sharpest contraction since May 2020 on notable falls in orders and output, survey results from S&P Global showed on Thursday. The construction Purchasing Managers' Index fell unexpectedly to 44.6 in February from 48.1 in January. The reading was seen at 49.5.

The euro strengthened against other major currencies in the Asian session on Thursday, following a spike in European bond yields on Germany's proposed 500-billion-euro ($539.85 billion) infrastructure fund and a revision to borrowing restrictions.

Germany's construction sector continued to contract and the pace of decline worsened in February, survey results from S&P Global showed on Thursday. The HCOB construction Purchasing Managers' Index registered 41.2 in February, down from January's 20-month high of 42.5. The reading remained well below 50.0 indicating contraction.

The commodity currencies such as Australia, the New Zealand and the Canadian dollars strengthened against their major currencies in the Asian session on Thursday amid risk appetite, as traders react positively to news that the Trump administration announced a one-month delay on tariffs affecting cars entering the U.S. from Canada and Mexico, raising hopes for negotiations.

The European Central Bank is likely to cut its interest rates on Thursday as inflation softened amid weaker economic growth. Markets expect the bank to lower the policy rates by 25 basis points. The deposit facility rate is likely to be reduced to 2.50 percent from 2.75 percent.

The U.S. dollar slid on Wednesday, extending recent losses, as the Trump administration's tariff moves and the retaliatory measures announced by some countries have raised concerns about global economic growth.

New orders for U.S. manufactured goods surged by slightly more than expected in the month of January, according to a report released by the Commerce Department on Wednesday. The report said factory orders shot up by 1.7 percent in January after falling by a revised 0.6 percent in December. Economists had expected factory orders to jump by 1.6 percent.

The Institute for Supply Management released a report on Wednesday showing an unexpected uptick by its reading on U.S. service sector activity in the month of February. The ISM said its services PMI inched up to 53.5 in February from 52.8 in January, with a reading above 50 indicating growth. Economists had expected the index to edge down to 52.6.

A report released by payroll processor ADP on Wednesday showed private sector employment in the U.S. increased by much less than expected in the month of February. ADP said private sector employment rose by 77,000 jobs in February after climbing by an upwardly revised 186,000 jobs in January. Economists had expected private sector employment to grow by 140,000 jobs.

Euro area private sector grew modestly in February as Germany, Spain and Italy expanded, but French activity hit the lowest in more than a year, final results of the purchasing managers' survey by S&P Global showed on Wednesday. The HCOB final composite output index remained unchanged at 50.2 in February. The score also matched the flash estimate of 50.2.

The U.S. dollar weakened against other major currencies in the European session on Wednesday, amid growing worries about slowing U.S. economic growth and the effects of recently imposed tariffs.

The euro strengthened against other major currencies in the European session on Wednesday, as traders reacted positively to news about the German government's plans to increase defense and infrastructure spending.

China's service sector grew at a faster pace in February on a moderate growth in new business, survey results from S&P Global showed on Wednesday. The services Purchasing Managers' Index rose unexpectedly to 51.4 in February from 51.0 in January. The reading was forecast to fall to 50.8. The score has remained above the neutral 50.0 mark for 26 consecutive months.

Australia's economy logged a faster-than-expected growth in the fourth quarter underpinned by exports and government spending, data from the Australian Bureau of Statistics revealed on Wednesday. Gross domestic product climbed 0.6 percent sequentially in the December quarter, following a 0.3 percent rise in the September quarter. GDP was expected to grow 0.5 percent in the fourth quarter.

China maintained its growth target for 2025 but the government became more cautious about nominal growth and inflation outlook amid heightened uncertainty surrounding the U.S trade tariff threats. Beijing aims to achieve growth target of "around 5 percent" for 2025, which was unchanged from the 2024 goal, Premier Li Qiang said at the 14th National People's Congress on Wednesday.

The dollar drifted down on Tuesday, extending losses from previous session, amid concerns about the economic impact of trade war following the imposition of tariffs by U.S. on Canada, Mexico and China, and the retaliatory measures by China and Canada.

Euro area unemployment rate remained unchanged at a record low in January despite weaker economic activity, official data showed Tuesday. The jobless rate stood at 6.2 percent in January, unchanged from December, Eurostat reported. This was down from 6.5 percent in the same period last year. The expected rate was 6.3 percent.

The U.S. dollar weakened against other major currencies in the European session on Tuesday, as traders' confidence was tempered by weak U.S. economic data.

The Reserve Bank of Australia is cautious about lowering the benchmark interest rate further and the decision to cut the rate in February does not mean that the bank is committed to cut again at coming meetings. At the February meeting, the bank had reduced the interest rate for the first time since 2020. The rate was lowered by 25 basis points to 4.10 percent.

Capital investment of Japanese companies declined unexpectedly in the fourth quarter and the jobless rate remained in January, official data revealed Tuesday. Investment in plant and machinery dropped 0.2 percent, in contrast to the sharp 8.1 percent increase in the third quarter, the Ministry of Finance reported. Investment declined for the first time in nearly four years.

Unemployment from the euro area and Spain are the top economic news due on Tuesday, headlining a light day for the European economic news. At 3.00 am ET, Spain's labor agency publishes monthly unemployment data for February. The number of unemployed is expected to rise to 45,200 from 38,700 in the previous month.

The U.S. dollar drifted lower on Monday, losing ground against almost all its major counterparts, amid rising concerns about global growth, and prospects of a rate cut by the Federal Reserve earlier than expected.