The Euro continued to push higher across the board yesterday after the release of better than expected consumer confidence data from Germany. Investor confidence remains high as Europe seems to be showing signs of being over the worst of the debt crisis. Sterling received support from an unlikely source due to a lack of more substantial data releases. The CBI reported sales figure for July rose to 33 from 5 in June, the fastest rate on increase in 3 years, and showed retailers were significantly more upbeat about future prospects. The data does include discounting due to the world cup and recent warm weather.

U.S. data drove the dollar higher in the afternoon as investor confidence was shaken by yet another weaker economic data release from the States. Consumer confidence fell to 50.4 from 54.3 and sparked safe haven buying of the dollar, predominantly versus the euro.

Bank of England governor Mervyn King is expected to speak this morning but there is no other U.K. data scheduled for release. In the E.U German CPI data is expected while in the U.S. durable goods orders are on the calendar. The Fed releases its beige book report tonight.