Despite the fact that the U.K. PPI Input came in below analyst's predictions, the British pond has managed to hang onto most of its earlier gains going into afternoon trading. The PPI, a measure of the change in price of goods and raw materials purchased by manufacturers, is usually considered a leading indicator of economic health. That does not appear to be the case today, as we take a look at sterling's performance. GBP/USD, currently up around 45 pips from earlier this morning, is trading around the 1.5197 level. GBP/JPY, currently trading around the 134.40 level, is up almost 50 pips from this morning.

Going into the afternoon, traders will want to pay attention to the Canadian Employment Change report at 11:00 GMT, as well as the Canadian Housing Starts report at 12:15 GMT. The Canadian dollar has been making steady gains on its U.S. counterpart over the last few days. Should today's indicators show improvement in the Canadian economy, the loonie may be able to extend its current bullish trend.