The 17-nation currency rebounded from 16-month low versus the U.S. dollar and 11-year low against the Japanese yen as leaders of the largest euro area economies meet today in Berlin to conduct talks before the EU summit at the end of the current month.

The leaders will discuss creating a strong and decisive plan to continue the efforts done on December 9 summit that aimed at creating a fiscal compact for the euro region.

The meeting may also include discussions about the expansion of the 500-billion euro aid package, which was initially rejected by German officials, and the possibility of launching a financial-transaction tax.

However, the euro may become once again under pressure where the European Central Bank (ECB) data released on Monday showed that European banks have used all-time high on Friday, reflecting the concerns in markets which prompted banks to lend from the ECB instead of depending on each other.

In general, the market is witnessing correctional movements after last week's bearishness which pushed refuges higher at the expense of high-yielding currencies.

Concerning the EUR/JPY pair, it crawled back on the daily charts to trade around 98.06 after recording a high of 98.24 and a low of 97.62, after the release of better-than-expected German trade data, which showed that the trade surplus widened in November on the back of the rise in exports.

The trading range for the week is expected among the key support at 94.50 and the key resistance at 99.60.

Moreover, the dollar index, which tracks the dollar's movement versus a basket of major currencies, halted the rally seen last week to touch a low of 80.95 compared with the day's starting level of 81.34.

Against the Swiss franc, it stopped the advance over the past three sessions to trade around 0.9513, where the Swiss data gave strong support for the franc. Unemployment came in at 3.1% last year in comparison with 3.9% in 2010, despite the franc's appreciation. In addition, Swiss retail sales climbed 1.8% in the year ended November, exceeding both expectations of 0.2% and the revised 0.1%.

Moving to the GBP/USD pair, it also rebounded to the upside due to the slight optimism seen in the market, especailly with the absence of major fundamentals from U.K.

The pair is currently hovering around 1.5440, after recording a high of 1.5457 and a low of 1.5393, while the trading range for this week is among key support at 1.5075 and key resistance at 1.5780.