European common currency advances on hopes Greece is close to securing a second bailout

Greek Prime Minister Lucas Papademos will hold a meeting with three of political party leaders today after postponing it yesterday, while Papademos conducted unscheduled talks yesterday with the so-called troika on details of the spending cuts needed to become eligible for receiving the aid package; in addition, he held talks yesterday with Charles Dallara, managing director of the International Institute of Finance.

Papademos reached a tentative agreement with three of political party leaders after talks over the weekend, where they agreed to make further budget-cutting measures equal to 1.5% of GDP, yet they will continue talks today to flesh out details as well as other to discuss measures demanded by international lenders to grant Greece a second aid fund; specifically, bank recapitalization framework, wage cuts and measures to enhance competitiveness.

Concerning the EUR/USD pair, it rose for the third day to trade around 1.3275, after recording a high of 1.3286 and a low of 1.3239.

The trading range for today is among key support at 1.3045 and key resistance at 1.3415.

The U.S. dollar, on the other hand, fell slightly against a basket of major currencies, where the dollar index slipped to a low of 78.44 compared with the day's opening level of 78.50.

The USD/JPY rose significantly for the second day, where the yen fell to one-week low versus the green currency, on technical movements and on expected interventions from the BoJ to halt the yen's advance which affected exporters, while it also dropped yesterday after a report showing that Japan adopted so-called stealth intervention to depreciate its currency in November.

Currently, the pair is trading around 76.98 after reaching a high of 77.18 and a low of 76.73, where the trading range for today is among key support at 76.10 and key resistance now at 78.30.

Moving to the GBP/USD pair, it dropped slightly on the daily basis to trade around 1.5883 after touching a high of 1.5926 and a low of 1.5867, amid absence of data from the U.K. before tomorrow's rate decision which is expected to show the BoE will add 50 billon pounds to stimulus to boost the economy.

The trading range for today is among key support at 1.5630 and key resistance at 1.6165.