The European shared currency and British pound advanced against safe-haven currencies, more specifically franc, yen and dollar, in thin volume trading amid celebrations with Christmas.

The euro rebounded from three-week low versus the greenback, yet remains under pressure due to mounting debt concerns, especially after the recent wave of announcements by rating agencies to highly-indebted nations in the region.

Concerning the euro-dollar pair, it is currently showing some incline on the daily charts after it breached support at 1.3120 to rise to 1.3160.

So far, the pair has recorded a high of 1.3169 and a low of 1.3070, while the trading range for this week is among the key support at 1.2795 and the key resistance at 1.3365.

The sterling, on the other hand, UK Hometrack indicator showed slight improvement, yet it predict a decline in sales next year after the rise of the VAT to 20%.

The royal pair is showing slight advance on the daily chart; the pair is traded at 1.5446 after recording a high of 1.5456 and a low of 1.5398, whereas the trading range for this week is among the key support at 1.5125 and the key resistance at 1.5755.

To proceed, the dollar rose after China's raise to interest rate for the second time since October as it raised concerns the country's tightening will affect global recovery in the new year, yet with the rise in Asian shares gave a boost to higher-yielding currencies to pare their earlier drop.

The dollar index, which tracks the dollar performance against a basket of major currencies, slipped to a low of 80.20 after reaching a high of 80.67.

With regard to the dollar-yen pair, it is currently trading near the day's opening at 82.77 after recording a high of 82.97 and a low of 82.63.

The trading range for this week is among the key support at 80.35 and the key resistance at 84.25.