The market is taking a breather from the rally seen since the start of the week on the unwinding of pessimism. The market is not so confidence the Greek crisis is resolved as much as they unwound the heavy pessimism of default as austerity measures are passed and the EU is now standing a step away from more support.

With the rally seen since the start of the week, the momentum is gradually declining to the end of the week and with U.S. data on the queue. The jobless claims and manufacturing data will revive the focus on the state of the recovery and might support the retracement further with the dollar rebounding off lows to cover some of today's losses.

The dollar index has been trending south since morning to set the low of 74.49 from the high of 74.67 and now still bearish but limited the losses to 74.51.

The euro remains strong after the eased jitters, though focus remains on the second leg of the vote as the parliament votes on the bills to enact the austerity package. The German jobs figures were weaker than expected and inflation remained at 2.7% in June according to the flash estimate and below the expected 2.8% which also pressured the euro to slow the gains.

The EUR/USD declined from the high recorded at 1.4521 to currently hover around 1.4458 and still above the critical support at 1.4440 and off the lows at 1.4426.

Sterling on the other hand did not benefit from the weak dollar and continued the losses on its weak economic and monetary status. Consumer confidence slipped and house prices are weak which bolsters the case for the slowing recovery and the steady policy from the BoE next week.

The GBP/USD slumped to the low of 1.5971 from the early high of 1.6171 and currently still bearish at 1.6016 below the critical areas of 1.6060 and 1.6100 which keeps the downside pressure intact on the pair for the rest of the day.

As for the Japanese yen, the pair is finally moving and approaching the 80 barrier once again as the USD/JPY set the low so far at 80.29 from the high of 80.86. The trading range remains the same since the beginning of the week and the yen is only gaining strength on the weakness of majors as the currency lost the momentum ever since the earthquake and the intervention.

Eyes will still be on the fundamentals from the United States today as the downbeat figures might be the pressure to snap the relief rally on eased debt woes as the week counts the hours to its end.