The European single currency rose to $1.3768, up 1.3% from Monday. Waning concerns over Greece's budget woes and the potential for default as well as a stronger than expected ZEW result supported the EUR. The ZEW indicator of economic sentiment for Germany fell to 45.1 in February from a reading of 47.2 in January, beating economists' expectations of 42.5. In today's early trading the EUR is at $1.3769 from $1.3601 late Monday and at 124.37 Yen from 122.34 Yen. The U.K. Pound is at $1.5787 from $1.5661.

The U.K. reported that inflation jumped to 3.5% last month from 2.9% in December, falling slightly short of expectations, thus helped to lower expectations that the Bank of England will have to raise rates this year.

The focus of today's news is on the GBP with the release of the Claimant Count Change and the MPC meeting minutes at 9:30 GMT. Better than expected result will likely support the Pound.