The euro held steady against the dollar on Friday, Jan 20, and was on track for its biggest weekly gain in three months, having rallied on short-covering following its recent drop to a 17-month low.
Market players said position unwinding might give the euro a further lift in the near-term, with one possible upside target at $1.3077, the single currency's high so far in January.
Greece's negotiations with creditors on a debt swap remain a major worry, but any positive news there could see investors continue to cut bearish positions in the single currency, analysts said.
"If the Greek debt talks do break down, clearly that is going to be one of the risks to the euro/dollar,” said Mitul Kotecha, head of global foreign exchange strategy for Credit Agricole in Hong Kong.
"I suppose markets will look for any sign that the talks are progressing today to help to sustain the rally in euro," he added, Reuters reported
The euro held steady at $1.2963, well above a 17-month low of $1.2624 hit late last week on trading platform EBS.
