The European common currency is set to end 2011 with worries, as it is currently hovering around the lowest level in 10 years versus the yen and 15-month low against the green currency.

With the absence of data from major economies, the volume of trading is low before the new year holiday.

The only data released today showed Chinese manufacturing recorded a contraction of 48.7 in December compared with the prior reading of 49.0, where a reading above 50 indicates expansion.

Investors' thinking remained on the yield on the Italian 10-year notes which retreated to 6.98% compared with 7.56% in the previous auction as the rate is considered high as it is still near 7%, a rate which triggered bailouts for Greece and Portugal.

Also, the ECB said this week the balance sheet soared to 2.73 trillion euros, where lending to banks climbed to 879 billion euros in the week ended Dec. 23 on the back of last week's 489 billion euros three-year loans lent to 523 banks., where the announcement raised concerns the ECB will continue its support to banks to avert a financial disaster.

Concerning the EUR/JPY pair, it fell on the daily charts to trade around 100.09 after recording a high of 100.67 and a low of 99.94.

The trading range for the day is expected among the key support at 116.95 and the key resistance at 121.15.

For the dollar, it moved opposite to the euro as investors resorted to the greenback as a refuge.

The dollar index, which tracks the dollar movements versus a basket of major currencies, it remained high at 80.35, near the day's opening.

Moving to the GBP/USD pair, the pair showed advance despite the drop in house prices. U.K. Nationwide house prices dropped 0.2% in December, compared with both prior and expected readings of 0.4% and 0.0% respectively. From a year earlier, the reading advanced 1.0% from the previous 1.6% and compared to median estimates of 1.5%.

The pair fell on the daily charts to trade around 1.5477 after recording a high of 1.5483 and a low of 1.5399, where the trading range for today is among key support at 1.5180 and key resistance.