The majors were mixed in this morning's trading following positive economic data from China. However, the weeklong jump in the markets from greater risk taking appears to be losing steam as the EUR/USD and the GBP/USD failed to break significant resistance levels.

Chinese retail sales numbers jumped 18.7% on expectations of 18.6% increase in the previous year. This provided a spark for traders to add to their riskier positions. But inflationary data showed the Chinese economy may be overheating as year over year CPI rose to 3.1% on expectations of a rise of only 3.0%. The previous year had inflation climbing 2.8%. Traders are concerned that the Chinese government may take further steps to cool their economy, including a potential revaluation of the yuan.

The EUR/USD was higher at 1.2120 after an opening day price of 1.2100. The pair reached as high as 1.2139 but failed to make a significant breach of this resistance level. The cable was trading lower at 1.4650 from an opening price of 1.4709. The direction of the pair reversed following a failed breach of the 1.4750 resistance level.

This afternoon, traders will be anticipating key economic data from the U.S. Monthly core retail sales is due out at 12:30 GMT with economists' forecasts for an increase of 0.1%. Positive numbers from the U.S. could help to increase traders risk appetite, thereby increasing the value of the euro. A break of the resistance line for the EUR/USD could propel the pair to its next resistance line at 1.2300. The same would apply to the GBP/USD with the next resistance at 1.4810.