The European common currency continued its advance for the fifth day against the greenback, trading around five-week high on Friday trading, amid Greek-creditors talks, after another successful bond selling in Italy.

Still, there is optimism in markets after the Fed's pledge to keep borrowing cost at its low level through late 2014 and said policy makers are considering more asset purchases to bolster the economy.

After the successful bond selling yesterday by the Italian government yesterday, it sold 182-day notes with an average yield of 1.969%, which is lower than the 3.251% recorded the previous auction in December, before Monday's sale of 5- and 10-year bills.

Yet, eyes are still on the talks as both Greek and private-sector bondholders sides said negotiations showed progress on Thursday and talks will continue on Friday, where they expect a deal to be reached within a couple of days.

Meanwhile, there are hopes a deal could be reached as a report by a Greek newspaper Ethnos on Wednesday stated that private-sector creditors will accept a debt swap deal with the Greek government with an interest rate of 3.75% for new loans after Charles Dallara, who represents private-sector bondholders in the negotiations, met with bankers in Paris on Wednesday.

Concerning the EUR/USD pair, it rose for the fifth day to trade around 1.3145, after recording a high of 1.3160 and a low of 1.3075.

The trading range for today is among the major support at 1.2840 and the major resistance at 1.3295.

The dollar index, which tracks the dollar movements versus a basket of major currencies, on the other hand, continued its downside direction that started by mid-January to touch a low of 79.11, compared with the day's starting level of 79.40.

As for the USD/JPY, it fell sharply for the second day, before the release of U.S. annualized fourth quarter GDP data which is expected to show 3.0% expansion compared with 1.8% growth in the third quarter.

The pair is currently trade around 76.90 after reaching a high of 77.48 and a low of 76.87, while the trading range for today is among key support at 76.10 and key resistance now at 78.30.

Moving to the GBP/USD pair, it continued gains for the tenth consecutive session, following the improvement in the sentiment which boosted demand on high-yielding currencies, to hover around 1.5713 while recording a high of 1.5717 and a low of 1.5659.

The trading range for today is among key support at 1.5460 and key resistance at 1.5880.