The dollar continues to trade higher against the euro, pushing the single currency lower toward the 1.2540-level while sliding versus the Canadian dollar to 1.0113. US equities were largely flat on the session while crude oil slid by 0.8% to just above the $75-per barrel level. Spot gold held steady near its all-time highs, easing up marginally by 0.4% to trade near $1,233.73 per ounce. Markets have been relatively calm following last week's sharp spike in volatility but questions remain over whether the EU and IMF loan package will be sufficient in containing the sovereign-debt contagion in the Eurozone.

The data released this morning saw weekly jobless claims edge up higher than expected to 444k from an upwardly revised 448k in the previous week. Traders will turn to several key reports scheduled for release tomorrow consisting of April retail sales, industrial production, capacity utilization, business inventories and the University of Michigan consumer confidence survey. The advanced reading for the headline retail sales report is expected to increase by 0.2% in April compared with a 1.6% increase from March. The excluding automobiles retail sales figure is forecast to edge up by 0.4% versus 0.6% previously. Meanwhile, the April industrial production report is seen to increase by 0.7% compared with 0.1% from March while the capacity utilization report is estimated to increase to 73.8% versus 73.2% previously. Rounding out the reports will be the May University of Michigan consumer confidence survey is seen improving to 73.5 versus 72.2 from a month earlier.

The euro continues to struggle against the dollar as uncertainty lingers over long-term viability of the fiscal austerity measures and the loan bail-out package. The single currency is expected to remain under selling pressure over the coming sessions despite improving risk appetite.

EURUSD holds steady around 1.2560 with support starting at 1.2530 followed by 1.25 and 1.2470. Subsequent floors will emerge at 1.2440, followed by 1.24 and 1.2350. On the upside, resistance is seen at 1.2580, backed by 1.26 and 1.2640. Additional gains will be tempered at 1.2675, followed by 1.27 and 1.2750.