The European common currency and the sterling pound rebounded today to the upside as the sentiment improved after the flow of unexpected upbeat fundamentals from Germany and the United Kingdom; however, the bullishness remains limited as tension is still seen in the market and as this week comes to an end, the thing that triggers volatility and fluctuations.

Germany released the IFO survey, which measures the level of business confidence, where this survey showed that Germans' confidence in the economy improved in the month of April, which eased concerns the debt crisis is intensifying and deepening again at the largest economy in the euro zone.

The Survey which measures three aspects of confidence showed that the business climate advanced in April to 109.9 from 109.8, while the current assessment index reflected better confidence of 117.5 from 117.4 and finally the expectations for the coming period remained unchanged at 102.7, noting that all the indexes mentioned above came better than expectations and therefore supporting the euro to extend the gains against the low yielding U.S. dollar.

The EUR/USD pair started the Asian session at $1.3136 and then recorded the highest at $1.3178 and the lowest at $1.3128, and is trading in the moment around $1.3171.

The sterling pound advanced sharply today after the retail sales expanded in March in a faster than expected pace, which supported the royal currency to extend the gains against the U.S. dollar, reaching the highest level recorded since the 9th of November 2011.

Retail sales excluding auto fuel expanded in March by 1.5% from the prior drop of 0.7%, more than expectations of 0.4%. The monthly index including auto fuel expanded as well in March, adding 1.8% from 0.4%.

The sterling pound extended the gains recorded against the U.S. dollar for the fifth consecutive day, reaching the highest level recorded back in November 2011, where the GDP/USD after opening the session at $1.6048 recorded a high of $1.6117 and a low of $1.6037 and is currently hovering around1.6098.

In general, markets are expected to remain biased to the upside until the end of the European session; however, once the world's largest economy joins the last trading day markets will return to be volatile as investors will start closing their positions ahead of the coming week on fears this weekend might bring some surprises especially when the French general elections are around the corner.