Sterling rose to its highest level in more than two weeks against the Dollar on Thursday, after UK retail sales unexpectedly grew in July, indicating the outlook of the UK economy may not be as depressing as initially thought.

Sterling rose to its highest level in more than two weeks against the Dollar on Thursday, after UK retail sales unexpectedly grew in July, indicating the outlook of the UK economy may not be as depressing as initially thought.

Germany signalled its support for a European central Bank’s approach to resolve the debt crisis. The Euro was fairly buoyant as German Chancellor Angela Merkel said “the recent ECB decisions have made it clear that the ECB is counting on political action” in return for them to purchase bonds. The unity was positive for the Euro.

The US dollar lost ground for the first time this week following weak U.S data. U.S jobless claims increased and poor housing data put pressure on the USD. US sales of existing homes rose to a 4.5 million annual rate in July from 4.37 million in June, with the markets looking to US consumer confidence Data for some direction. This week, data may result in the Federal Reserve opting to relax monetary policy devaluing the currency.

Today’s Fundamentals

06:00 EUR German Producer Prices (YoY) (JUL)

High 0.9% 1.2% 1.6%

06:00 EUR German Producer Prices (MoM) (JUL)

Medium 0.0% 0.3% -0.4%

13:55 USD U. of Michigan Confidence (AUG P) (AUG P) High 72.3 72.3

14:00 USD Leading Indicators (JUL)

Medium 0.2% -0.3%

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