The dollar recovered against the euro in the New York session, rebounding off session lows at 1.38 to near the 1.36-figure. The European Council President Van Rompuy reiterated support for Greece but provided little details of the plan. Van Rompuy said financial support wasn't necessary today, adding that Greece did not ask for any financial support. The announcement dragged the single currency sharply lower, briefly falling beneath the 1.36-level against the dollar and trading near 122 versus the yen.

Weekly jobless claims improved by more than expected, declining to 440k from 480k in the previous week. US equities were higher on the session, with the Dow Jones and S&P 500 advancing by around 1% while the Nasdaq improved by 1.3%. Crude oil extended its recovery trading to $75.53 and spot gold edged up to $1,094 per ounce.

In the coming session, the US economic calendar consists of January retail sales, February University of Michigan Consumer Confidence and the December business inventories. The headline retail sales figure is expected to increase by 0.3% in January compared with a 0.3% decline in December while the excluding automobiles reading is seen improving by 0.5% from a 0.2% decline in the previous month.

Euro Slumps

The euro came under selling pressure as few details were provided from the EU Summit on Greece's deficit woes. The euro tumbled near the 122-level versus the yen and briefly fell beneath the 1.36-handle against the dollar. Traders will look ahead to Q4 GDP reports from Germany and the Eurozone, as well as Eurozone December industrial production. Germany's economy is expected to post a 2.2% contraction from a decline of 4.7% in the previous year and a 0.2% quarterly increase from 0.7% previously.

EURUSD trades near 1.3680, with interim resistance seen at 1.37 followed by 1.3740 and 1.3780. Subsequent ceilings are eyed at 1.38, followed by 1.3850 and 1.39. On the downside, support starts at 1.3640, backed by 1.36 and 1.3570.