The European common currency fell against majors despite the buoyant report released today showing that second quarter GDP in the euro area came in at 1.0% compared with 0.2% in the first quarter and estimates of 0.7% expansion.

The 16-nation currency advanced earlier today after the release of stellar growth datafrom Germany as the gigantic economy expanded 2.2% in the second quarter from the revised 0.5% in the first quarter.

The euro pared its earlier gains after the drop in Italian debt sales renewed woes with regard sovereign debt in the euro area. So far, the euro pared some last month against when it rose to above three-month high against the greenback.

Concerning the euro-dollar pair, it plummeted for the fifth day to 1.2787 after falling from a high of 1.2931, to record its first weekly decline in six weeks. For the rest of the day, the pair is expected to move between support and resistance at 1.2710 and 1.2830 respectively.

On the other hand, the dollar index, which tracks the dollar movements against six major currencies, rebounded to 82.72 after visiting a low of 82.17 ahead of the release of U.S. CPI, retail sales and confidence reports later on today.

Turning to the sterling-dollar pair, it is trading near the day's opening at 1.5586 in the absence of economic data from the United Kingdom. The pair is poised for its first weekly drop in four weeks after the fears in markets damped demand on higher-yielding assets.

The royal pair recorded a high of 1.5678 and a low of 1.5561, while it is expected to move between support at 1.5535 and resistance at 1.5650 for the rest of the day.

With regard to the dollar-yen pair, it is showing slight decline on speculations the BoJ will not intervene in currency market leaving the yen to strengthen against majors. So far, the pair is trading at 85.77, reporting a high of 86.18 and a low of 85.55, whereas support is seen at 85.40 while resistance is at 86.20.