Busy day in trading as the economic calendar from Europe brought important data, which all suggested further misery to the debt-burdened continent, causing high yielding assets to advance in trading opposite of the dollar to fell as confidence increased in Germany.

Confidence reports from Germany overshadowed the worse than expected performance of the economy, where Germany's economy expanded by 0.4% during the fourth-quarter of the year, which comes below market's expectations of 0.5 percent.

Meanwhile, the Euro-Zone area witnessed an expansion rate of 0.3%, which is consistent with the previous while below the expected 0.4 percent.

The U.S. Dollar index, which tracks the performance of the dollar against six-majors, dropped on the daily scale to trade at 78.34, compared with the opening levels of 78.51.

The euro is currently trading higher against the dollar, breaching the resistance at 1.3505 to currently trade at 1.3519. The pair's opening levels were set at 1.3485 while setting a high of 1.3550 and a low of 1.3459.

Earlier this month, the S&P downgraded Ireland's credit rating by one notch to (A-) warning that the euro-zone credit rating may be subject to a rate cut by April if debt conditions continue unsolved.

The outlook for Ireland was shifted to negative, where S&P said that the outlook reflects the view of the uncertainties surrounding the size of Ireland additional capital needs for its largely state-owned financial sector.

The pound extended its rise against majors, trading at 1.6123, compared with the opening levels of 1.6035 where it managed to reach the highest at 1.6142 and the lowest at 1.6004

The British economy showed that prices accelerated in January by 4.0%, compared with the previous 3.7% reported in December.

The pair's trading is bounded by the support at 1.6060 and the resistance at 1.6295.

The dollar traded higher against the yen, at 83.76, attempting to re-test the resistance at 84.00. The pair will drop as the Stochastic Oscillator continue to trade in an overbought areas, therefore, a downside movement could be activated as the U.S. session commence.

The pair's bonded by the support at 83.00 and the resistance at 84.0 where a breach of any levels, would allow another 50 point movement to the pair whether it was to the upside or to the downside.

Note: data was collected at 13:00 GMT.