The European common currency continued the advance against the greenback, trading around five-week high on Thursday trading on a report Greece is close to reach a deal with the private-sector bondholders and after successful Italian bond auction.

Optimism increased in markets after yesterday's Fed's pledge to keep borrowing cost at its low level through late 2014 and said policy makers are considering more asset purchases to bolster the economy.

Greek newspaper Ethnos reported on Wednesday that private-sector creditors will accept a debt swap deal with the Greek government with an interest rate of 3.75% for new loans after Charles Dallara, who represents private-sector bondholders in the negotiations, met with bankers in Paris on Wednesday.

Talks will be resumed today as Dallara will meet with Greek Prime Minister Lucas Papademos at 06:00 p.m. GMT in Athens.

On the other hand, the Italian government sold 4.5 billion euros of zero-coupon notes of debt maturing in 2014 on an average yield of 3.76% and 500 million euros of inflation-linked debt, reaching the maximum target of the sale.

Today's auction is a serious test before Monday's sale of 5- and 10-year bills.

Concerning the EUR/USD, the pair rose for the fourth day to trade around 1.3160 after recording a high of 1.3174 and a low of 1.3088.The trading range for today is among the major support at 1.2840 and the major resistance at 1.3295.

The dollar index, which tracks the dollar's movement versus a basket of major currencies, on the other hand, it continued its downside direction that started by mid-January to touch a low of 79.10, compared with the day's starting level of 79.46.

As for the USD/JPY, the pair fell after three consecutive days of gains before important U.S. reports, including durable goods, jobless claims and new home sales.

The pair is currently trade around 77.55 after reaching a high of 77.81 and a low of 77.39, while the trading range for today is among key support at 76.50 and key resistance now at 79.55.

Moving to the GBP/USD, the pair continued gains for the ninth consecutive session, following the improvement in the sentiment which boosted demand on high-yielding currencies, to hover around 1.5685 while recording a high of 1.5717 and a low of 1.5636.The trading range for today is among key support at 1.5460 and key resistance at 1.5880.