The euro rebounded sharply to the upside against the U.S. dollar and the sterling pound after the upbeat results from the European summit, which spread optimism in the market, awaiting the critical gross domestic product from the world's largest economy.

The euro advanced after European leaders revealed the plan and steps to put an end to the two-year debt crisis, where the private sector agreed to take a voluntary 50% write-down on Greek bonds, while the European Union and the International Monetary Fund agreed to provide Greece with 130 billion euros second bailout up from 109 billions.

Moreover, leaders agreed to raise the expanded powers of the European Financial Stability Facility to one trillion euros, with two main functions detailed; the first on to act as an insurer for new bonds issuance, while the second function is to act as an investment vehicles to finance several operations.

Optimism spread in the market after European leaders have finally found common grounds to stop the debt crisis from spreading into larger economies within the zone, with firm steps to overcome the debt crisis and aid Greece.

The euro gained strength against the U.S. dollar, where after the opening of 1.3903, the EUR/USD pair rebounded sharply to the upside recording the highest at 1.4037 after reaching a low of 1.3863, noting that the pair is currently trading around 1.4021.

Data showed today that the European confidence slumped further in October, yet better than expectations, which supported the euro to hold the gains recorded earlier.

Concerning the EUR/GBP, the pair opened the session in Asia at 0.8705, and recorded a high of 0.8767 and a low of 0.8689, and is currently trading at 0.8760, extending the gains recorded in the past session.

On the other hand, the U.S. dollar index (USDIX) retreated sharply after opening the Asian session at 76.18, to currently trade around 75.62. The index set the highest at 76.31 and the lowest at 75.55.

Gross domestic product figures are expected from the world's largest economy, with hopeful eyes that growth figures will meet market expectations and show that the U.S. economy grew 2.5% in the third quarter compared with 1.3% in the previous quarter, which could support the optimism seen in the market to prevail.

Moreover, the Japanese yen appreciated against the U.S. dollar, where the USD/JPY pair is trading now around the all-time record, especially after the Bank of Japan kept rates unchanged virtually zero at 0.10% to support growth and also expanded the asset purchases program by 5 trillion yen to a total of 20 trillion yen.

The pair opened the session today at 76.17, and recorded a high of 76.28 and a low of 75.73, and trades now around 75.80.