2014.08.0623:33:58UTC+00Euro softens as data from Italy, Germany dampen sentiment

The euro held broad losses early Thursday following a series of disappointing data from Italy and Germany soured sentiment for the currency hours before the European Central Bank’s policy review.

Italy slipped back into recession in the 2nd quarter while German industrial orders in June logged its largest monthly plunge since September 2011.

Investors quickly dampened the euro, pushing it to the lowest in more than eight months against the Japanese yen at ¥136.16. The currency plummeted to a three-week low against the Swiss franc, reaching 1.2140 francs.

Against the US dollar, the common currency initially tumbled to a nine-month trough of $1.3333 but wiped out all of its losings and some to go back at $1.3385.

"Yet a later examination by an institutional trade desk suggested that it was simply panic selling which forced many nervous speculators out of their leveraged positions," said David Rodriguez, Strategist at DailyFX.

Investors now anticipate the outcome of the ECB policy meeting today.