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The USD lost ground to both the EUR and GBP on Thursday as Wall Street turned in its second consecutive day of gains. Though the positive returns on the major indexes were not huge it may have been enough to propel some international risk sentiment. The weekly Unemployment Claims were released and disappointed investors with a 462K, which was above the expectation of 452K. Today Retail Sales reports are on the calendar from the States and traders who have been staying low most of the week due to an absence of major data may be poised to strike with any surprises. Both the Core and broad Retail Sales figures are expected to be rather flat. Also the Consumer Confidence from the University of Michigan will be brought forth and the Preliminary reading is estimated to be 74.0.

The greenback has essentially traded in range this week and going into the weekend could be poised to find some volatility if investors see any room for maneuvering. Wall Street has produced consolidated trading for a while and if it should make a strong turn this could spur the markets into action. Next week will see much more fundamental data than what has transpired the past four days. Today’s Retail numbers are expecting a rather lackluster display and some analysts are pointing to the severe weather that hit key consumer regions in the States as a reason for a possibly disappointing outcome. The USD found itself under pressure yesterday as the EUR rebounded. The decision that traders will have to make today is whether the USD may continue to find some short term weakness.

Perhaps traders have gotten tired of watching ‘the horse get beaten’, this as the EUR gained on Thursday without any new fundamental issues resolved regarding the Greek debt situation. While Greece was shut down in many areas due to major organized strikes taking place, the EUR currency did show the ability to find some momentum. European Industrial Production numbers are on the schedule today along with German WPI statistics. The Industrial Production data from Europe is expected to improve, while the German inflation report is anticipated to be fairly unspectacular. Going into today’s last trading session for the week the EUR has been able to hold onto its ground as a whole. While many of the outstanding issues regarding the Sovereign debt concerns of Greece remain unanswered it is possible that for the time being traders have been able to push these considerations to the side.

Without any major economic data reported on Thursday the GBP enjoyed a better performance against the USD. The Sterling struggled much of this week under rather negative economic data. Today will also be very quiet for news from the U.K. and this will leave the GBP able to trade under the banner of risk sentiment. Yesterday proved to be a positive day across the international bourses and this result may have enhanced the Sterling’s ability to enjoy a day in the sun. The GBP has faced pressure much of this week, but going into the weekend may find that it has some wind in its sails and find some backers.

The JPY and USD continued to prance along on the dance floor and perform their version of the ‘safety dance’. The pair has shown a remarkable ability to stay in place in what has been an extremely consolidated marketplace. International bourses have shown some positive movement the past couple of days but this has been weighed down by Asian investors who are still quite cautious. Gold did rise slightly yesterday as the greenback slipped against other major currencies and its story could prove an interesting one as the day progresses.

The USD had a mixed day among the major currencies in range bound movement.  In early trading the greenback pushed the EUR and GBP around but as the day wore on the USD began to give back its gains. Wall Street turned in a positive day on Wednesday. Wholesale Inventories decreased by -0.2%, which did surprise the market as these numbers suggested sales have been stronger than expected. The question that must be asked now is if businesses will follow through and purchase additional products and hope consumption is actually increasing. Today weekly Unemployment Claims are on the calendar and they are expected to see an improvement compared to last week’s outcome. American Trade Balance numbers will also be published.

This has been a quiet week of data from the U.S. and today’s unemployment numbers could spark some volatility if they produce a surprise. If that does not happen, then it will probably rest upon tomorrow’s Retail Sales numbers and the Consumer Sentiment reading from the University of Michigan to bring impetus into what has been a rather risk adverse crowd. Timothy Geithner provided some spark yesterday when he commented that any new regulations on Hedge Funds and Private Equity Groups would have to be examined more closely and that European proposals would be unfair for U.S. firms if they were to be approved in their current form. These comments may be enough to help add some positive sentiment into the U.S. markets, which have viewed many of the current administrations comments as anti-free market. Risk appetite has been rather restrained the past couple of weeks and we have seen rather consolidated results on Wall Street and a stronger USD. The greenback’s strength the past few months cannot be denied but short term trading is likely to be rather opportunistic.

The EUR was able to gain some footing as the trading day came to an end on Wednesday. European data released yesterday showed that the French and Italian Industrial Production numbers were better than forecasted. This will be welcome news for investors in the European Union who have been dealing with a dark tide of rather negative sentiment the past couple of months stemming from whispers regarding the possibility of a double dip recession and the Greek debt dynamics. Data will be muted from the E.U. today with only the ECB Monthly Bulletin on the schedule. Tomorrow broad Industrial Production numbers for the continent will be brought forth. The crux of the matter regarding the EUR is the continuing flurry of news that is developing around the Greek debt crisis. After last weekend’s ‘road show’ by the Greek government and daily pronouncements, official speeches have become a bit more tranquil the past two days perhaps allowing traders to exhale. The EUR remains on the weaker side of its range against the USD and is likely to face intermittent pressure the next two days.

A rather interesting range has emerged for the Sterling the past two days as it continues to stagnate nears its lower depths against the USD. Manufacturing Production data was released yesterday and proved negative with a result of minus -0.9% compared to the expected gain of 0.3%. The economic releases from the U.K., thus has kept its rather lackluster outcomes on a steady pace. Today and tomorrow will be quiet for data and this will keep the GBP under a rather murky sentiment which is sure make for a challenging trading atmosphere. The Sterling has faced plenty of pressure in recent sessions and if risk appetite does not show any sudden increase the GBP could continue to be tested.

The JPY lost a small amount of ground to the USD on Wednesday as international bourses turned in slightly positive results. The JPY remains in an extremely tight range that seems to be moving on the amount of caution that weighs in on the marketplace. Gold turned in a day worth noting yesterday as it slumped to around 1106.00 USD an ounce, this as the greenback turned in a mixed day. Gold needs to be watched and the question traders will ask is if the precious metal was merely range trading yesterday and will bounce back or if this is a sign that its consolidation may be about to change.

A repeat performance occurred in the currency markets on Tuesday when compared to Monday. The USD continued to show a stable range as it gained slightly against the EUR and GBP. There has been a lack of major economic data early this week and that has highlighted the amount of caution that exists in the broad markets. Wall Street gained yesterday but its results were within what has become a sideways track. Wholesale Inventories figures are on the schedule today and the projection is a gain of 0.2%. Tomorrow weekly Unemployment Claims and Trade Balance data will be released. While the unemployment statistics could provide some fireworks, investors may actually be gearing themselves for the Retail Sales publication on Friday.

The Wholesale Inventories data may provide insight into the sentiment of businesses within the U.S. as investors will look for an increase in their purchasing, which could signal that companies believe they are about to experience greater demand for their goods. Having said that, the numbers today will likely not cause much more than a short tremor. Traders may focus a bit on commodity prices for guidance, prices will be monitored with the Crude Oil Inventories numbers on the calendar today. The price of Oil has shown some ability to stay above 80.00 USD a barrel and suggests that some speculation has come into the commodity based on the belief by some that global economies are recovering and has the capacity to improve. However, it must be remembered that we are starting to enter what is historically a seasonal uptrend in Crude Oil. The caution that the broad marketplace has experienced this week should not be mistaken for a calm atmosphere, as investors continue to find a rather aggressive debate about direction. The USD has performed in a steady manner so far this week.

The EUR traded lower on Tuesday into ‘known’ depths within its current  range. There was no major economic data from the European Union on Tuesday and the Greek debt crisis continued to dominate the news. The Greek government held high level discussions with the United States yesterday. It has publically asked the U.S. to allow for a discussion at the next G-7 on the subject of speculation within the CDS –Credit Default Swaps. However this appears to be a smoke screen by the Greek government and they could be trying to cover up their own mistakes by blaming investors who are merely acting as a counter balance in the financial world. German Trade Balance and French Industrial Production numbers will be released today. Tomorrow will be another quiet day of releases. The absence of major statistics from Europe has helped keep the currency markets within a cautious place. The EUR has slumped in early trading this week and traders continue to search for a fair value.