The European common currency advanced slightly against the dollar on hopes Greece will receive a second bailout that would make the debt-mired nation avoid default, as euro zone officials said on Thursday Greece's bailout will be ready for approval on Monday.
Greek Finance Minister Evangelos Venizelos said Greece had fulfilled the two demands of the EU and IMF to secure the second bailout. He said the Cabinet outlined how to fill a 325 million euro gap of budget cuts for the current year, while both leaders of Greece's biggest political parties signed written commitment to adopt austerity measures on Wednesday.
Also, three euro zone officials said the ECB is swapping Greek bonds with new ones in order not to bare losses in a debt restructuring condition.
However, investor's vibes are mixed as some are optimistic that Greece will receive the second aid package after fulfilling all requirements asked by euro area finance ministers, while others are still worried that there may be other impediments that would prevent delivering the aid to the debt-mired Greece.
There are worries that Greece may break its vows like what happened several times since the eruption of the debt crisis more than two years ago and especially that a debt restructuring deal has to be also approved in line with the aid package.
Concerning the EUR/USD pair, it rose for the second day to trade above three-week low around 1.3140, after falling to a low of 1.3113 while the day's high was recorded at 1.3169.
The trading range for today is among key support at 12975 and key resistance at 1.3315.
The U.S. dollar, on the other hand, retreated against a basket of major currencies as hopes a Greek bailout approval is now very close and improvement in U.S. outlook damped safety demand on the dollar.
The dollar index slipped to a low of 79.19 compared with the day's opening level of 79.37.
The USD/JPY continued its rally, trading around to 3-1/2 month high, as investors continue damping the yen after the unexpected asset buying by the BoJ this week.
Currently, the pair is trading around 79.10, where the day's high was seen at 79.18 while the low was touched at 78.77.
The trading range for today is among key support at 77.60 and key resistance now at 80.50.
Moving to the British pound, it is showing advance versus the greenback after a report showing that U.K. retail sales unexpectedly advanced 0.9% in January from the prior 0.6% and estimates of -0.3%.
The GBP/USD is meanwhile trading around 1.5825 after touching a high of 1.5861 and a low of 1.5787.
The trading range for today is among key support at 1.5585 and key resistance at 1.5975.