The EUR experienced modest gains in today\'s early trading as slight optimism returned to markets today, fueled by positive data from Japan and Australia. The U.S. currency declined versus 14 of its 16 major counterparts after Japanese retail sales and industrial production expanded and as Australian bank lending rose for a 3rd month. The Pound, however, is lower today despite better than expected GDP data as speculation grow of an early election in the U.K.

The Dollar dropped to $1.3623 per EUR in early European trading from $1.3548 in New York yesterday. The Yen fell to 121.30 per EUR from 120.69 yesterday. The Japanese currency weakened to 89.32 per Dollar from 89.07.

Later today, investors are advised to follow the release of the U.S Prelim GDP at 13:30 and the Existing Home Sales at 15:00 GMT for further clues about the Dollar direction heading to next week.

B a k e ‹‹