-- Euro consolidates recent gains, broadly positive tone to the markets -- Traders close out positions ahead of holiday weekend in North America -- Sterling benefits from strong January retail sales figures -- Norwegian krone continues upward trend By Jessica Mead Of DOW JONES NEWSWIRES LONDON (Dow Jones)--Currency markets were holding steady in tight ranges in European trading Friday as participants refrained from placing new bets ahead of Monday's meeting of euro-zone finance ministers on Greece and a long weekend in North America. Signs that Greece is edging closer to securing a second bailout helped maintain a mildly buoyant tone Friday, with the euro holding above $1.31 against the dollar, while peripheral euro-zone bond yields tightened and European equity markets made small gains. "The markets, which have resumed a more bullish mode, will now look towards more of the groundwork being put in place over the weekend, with the hope of some agreement at Monday's Finance Ministers' meeting," said Lee McDarby, head of dealing at Investec Corporate Treasury. Traders also sought to close out existing positions ahead of the weekend. "If you have made some money, you'll probably be happy taking profit on it," said Ankita Dudani, currency strategist at RBS in London. The euro managed to trade as high as $1.3170 against the dollar as stops were taken out in relatively light trade, dragging the common currency higher against the yen to above Y104. But the common currency could not advance any further with traders unwilling to place any bets ahead of a weekend that may bring further clarity on the details of a proposed Greek deal. The other key focal point of the session was sterling, which was buoyed by some punchy U.K. January retail sales figures. The volume of retail sales rose 0.9% from December, much stronger than the 0.4% fall expected by economists. The surprisingly robust figures reduced the chances that the U.K. economy would contract again in the first quarter of 2012, economists said. "This latest set of data must further reduce the chances of a second successive decline in GDP in the first quarter," said Nida Ali, economic adviser to the Ernst & Young ITEM Club. The pound rose as high as $1.5862 against the dollar, while the euro dipped to GBP0.8287 immediately following the figures. Elsewhere, the Norwegian krone continued its upward trend Friday, trading close to nine-year highs against the euro after Norges Bank governor Oystein Olsen made it clear Thursday that the central bank has no desire to carry through new aggressive rate cuts to get inflation quickly back on target, according to strategists at Citi. Coming up in the session ahead is U.S. inflation data at 1330 GMT. Economists expect the headline consumer prices index to rise 0.3% on the month. At 1148 GMT, the euro was trading at $1.3130 against the dollar, compared with $1.3135 late Thursday in New York, according to trading system EBS. The dollar was at Y79.11 against the yen, compared with Y78.94, while the euro was at Y103.88 compared with Y103.60. Meanwhile, the pound was trading at $1.5830 against the dollar, compared with $1.5872 late Thursday in New York. The ICE Dollar Index, which tracks the greenback against a basket of currencies, was at 79.391 compared with 79.375 late Thursday in New York. A summary of key levels for chart-watching technical strategists is below: Forex spot: EUR/USD USD/JPY GBP/USD USD/CHF Spot 1141 GMT 1.3138 79.07 1.5838 0.9191 3 Day Trend Range Bullish Bullish Bearish Weekly Trend Bearish Bullish Range Bearish 200 day ma 1.3525 78.36 1.5814 0.9059 3rd Resistance 1.3284 79.55 1.6000 0.9300 2nd Resistance 1.3201 79.31 1.5927 0.9240 1st Resistance 1.3191 79.18 1.5862 0.9208 Pivot* 1.3088 78.75 1.5757 0.9222 1st Support 1.3115 78.95 1.5791 0.9156 2nd Support 1.3060 78.67 1.5730 0.9103 3rd Support 1.2974 78.36 1.5645 0.9088 Forex spot: EUR/JPY Spot 1141 GMT 103.90 3 Day Trend Bullish Weekly Trend Bullish 200 day ma 106.00 3rd Resistance 104.77 2nd Resistance 104.42 1st Resistance 104.13 Pivot* 103.14 1st Support 103.66 2nd Support 103.44 3rd Support 102.93 -By Jessica Mead, Dow Jones Newswires; +44 (0) 20 7842 9256, jessica.mead@dowjones.com; @djfxtrader/@jessicacmead (Dow Jones Technical Strategist Francis Bray contributed to this story.)

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