The British pound advanced against majors after the release of better-than-expected annual retail sales readings, while monthly readings matched forecasts.

Retail sales excluding auto fuel rose 1.8% annually from expectations of 1.4% while the monthly reading matched forecasts of 0.3%.

Concerning the royal pair, it managed to pare some of the losses incurred over the past two days where it is currently doing attempts to remain above 1.5580 levels.

The pair is trading at 1.5595 while it recorded a high of 1.5613 and a low of 1.5538.

The trading range for today is among the major support at 1.5385 and the major resistance at 1.5810.

Other data from Europe came mixed as euro zone PMI manufacturing showed improvement in December while the services gauge fell. Therefore, the news did not have much impact on the euro, where eyes will be on the EU summit starting today.

European leaders will meet to put come out with permanent rescue methods to tackle potential future sovereign debt crises after the expiry of the 750 billion euro package in 2013.

A split among members and does not reaching consensus over future anti-debt crisis mechanism may put further pressure on the European shared currency that lost 6.9% against the dollar in November.

The euro-dollar pair, it is showing slight advance on the daily basis after it fell when it hit resistance at 1.3367 yesterday. The pair reached a high of 1.3265 while the lowest point was recorded at 1.3205.

The pair is currently trading at 1.3227 while the trading range for today is among the major support at 1.3080 and the major resistance at 1.3460.

Later in the day, US will release important housing data, yet more focus will be on jobless claims data as the US labor market is still impacted by the crisis.

Initial jobless claims for last week will incline to 425 thousands from 421 thousands.

In addition, President Obama's tax plan is on its way to get approval from the house today. This plan may help the economy on the short run through supporting growth but it will lead to higher debt on the long run.

The dollar index, which tracks the dollar performance versus a basket of major currencies, slipped to a low of 79.97 from the day's opening at 80.22, yet moving in narrow range ahead of US data.

With regard to the dollar-yen pair, it pared its earlier advance as it fell from a high of 84.38 to touch its lowest point at 83.94 while it is currently trading at 84.00.

The trading range for today is among the major support at 0.9460 and the major resistance at 0.9770.