The EUR made modest gains against the safe heaven USD and JPY in today's European trading as a slightly more optimist mood returned to markets. The EUR remained little changed against the Dollar after a report showed that German investor confidence fell in May, with the currency holding relatively steady above $1.24.

The European currency traded at $1.2412 from $1.2395 in New York yesterday. The Dollar is up slightly against the Yen at 92.74 from 92.50 Yen. The Pound is down at $1.4423 from $1.4480 after a volatile session.

The annual rate of inflation in the U.K rose to 3.7% in April - the highest level since November 2008, beating economists' expectation of 3.5%. The result helped push Sterling to a high of $1.4519; however, the move was brief as broader concerns over the country's debt outlook weigh heavily on the currency.