The euro advanced on Friday trading before European finance ministers meet in Denmark next week to decide on possible expansion in the power of the European rescue fund.
A two-day meeting on March 30-31 will decide whether there will be an agreement over boosting the size of the fund to 750 billion euros, through combining the remaining of the EFSF (250 billion euros) and the ESM (500 billion euros) to create a buffer against the spread of debt contagion to other euro area nations, noting that there is a strong rejection from Germany and Finland to the expansion as they see the current size is enough to combat debt crisis.
Also, the rise in French business confidence increased for the second time in nine months to 96 in March from a revised 93 in February managed to offset the grim manufacturing and services reports released yesterday which showed another contraction in the euro area's key sectors this month.
Bearishness dominated trading earlier today after China's PMI preliminary estimates from HSBC Holdings Plc and Markit Economics recorded 48.1 in March, the lowest since November, compared with 49.6 in February.
Currently, the EUR/USD pair is trading around 1.3245, after getting support from SMA 100 level at 1.3200 to touch the day's high at 1.3292 while the low was recorded at 1.3188.
The trading range for today is among key support at 1.3005 and key resistance at 1.3415.
On the flip side, the U.S. dollar showed decline against a basket of major currencies, where the dollar index is currently hovering around 79.45 compared with the day's opening at 79.65, where it reached a low of 79.20 after breaching support around 79.30 which represents SMA 100 level.
Against the yen, the greenback is meanwhile traded little above the day's opening around 82.65 after recording a high of 82.94 and a low of 82.48.
The trading range for today is among key support at 81.25 and key resistance now at 84.15.
Later in the day, a U.S. report may signal further progress in new home sales which are expected to jump to a 325,000 annual rate in February from 321,000 a month earlier.
Moreover, the pound advanced against the dollar, yet it retreated against the euro after a report showed that U.K. consumer confidence plummeted in February to 44 from 47 in January.
the GBP/USD pair is currently trading around 1.5845 after falling from a high of 1.5907 while the low was seen at 1.5804, where the trading range for today is among key support at 1.5615 and key resistance at 1.6000.