The euro continued its tumble for a third session on Friday to trade near one-week low versus the greenback, heading for a weekly decline, to continue its suffering since the ECB's liquidity pumping this week.

It seems that investors deemed the ECB injection of 529.5 billion euros to 800 European banks in a second round of its Long-Term Refinancing Operation (LTRO) a form of quantitative easing, thereby damping the currency on expected oversupply.

Fundamentals from the euro area released today showed that retail sales plunged for a third month in January recording 1.6% drop.

On the upside, European leaders, who met in Brussels on Thursday in their first day of an EU summit, agreed to accelerate the process of capitalization of the permanent European rescue fund, through completing all its tranches in 2015, one year earlier than planned.

EU President Herman Van Rompuy said It could be starting with the payment of two tranches in 2012 but we have to take a definite decision, where the final decision may come out today.

In the same context, euro area finance ministers, who met in Brussels on Thursday, decided to provide Greece with funds needed to ease the process of bond swap with private sector bondholders before a deadline of March 8.

Meanwhile, the EUR/USD pair is trading around 1.3250, where the breach of SMA 100 level around 1.3290 paved the way for further decline, after it touched a high of 1.3332, while the day's high was recorded at 1. 1.3238.

The trading range for today is among key support at 1.3110 and key resistance at 1.3550.

The U.S. dollar, on the other hand, rose against a basket of major currencies, heading for the largest weekly incline in two months, after getting buy recommendation from Morgan Stanley.

The six-currency gauge, the dollar index, surged to 79.10 compared with the day's opening at 78.78.

Against the yen, the greenback rose to nine-month high to trade around 81.50, where the day's high was seen at 81.70 while the low was touched at 80.06.

The trading range for today is among key support at 79.15 and key resistance now at 82.50.

Next week, U.S. data is predicted to show that the economy is gathering further momentum without any stimuli from the Fed.

Moving to the British pound, it fell from three-month high versus the greenback despite the better-than-estimated construction data which showed that the sector recorded a widening expansion in February.

Meanwhile, the GBP/USD is trading around 1.5920 after touching a high of 1.59565 and a low of 1.5903.

The trading range for today is among key support at 1.5730 and key resistance at 1.6165.