The pound to US dollar (Currency:USD) is 0.22% higher on the day. "The Pound rallied towards the highest level in three weeks against the U.S Dollar this morning, a report from the Confederation of British Industry showed that an index of UK retail sales rose in February, raising optimism that the UK economy will avoid a technical recession this quarter," says an exchange rate note from TorFx. The improvement in risk appetite following the German parliamentary vote on the Greek debt deal has also helped pushed Sterling higher against the Dollar with near-term resistance in the region of 1.5850. The Pound may also be set for a move towards 1.60 should it break through the 200-day moving average. The UK currency continued to stutter against the Euro, however, trading through 1.18 towards the weakest level in 12-weeks. UK gilts rose for a sixth day though, after Standard & Poor’s downgraded Greece’s credit rating to selective default, which increased demand for the relative safety of UK debt. The Euro rallied towards a three-month high against the Dollar, as the ECB prepare to take steps to improve liquidity at Euro-zone banks. The ECB has decided to temporarily suspend the eligibility of marketable debt instruments issued or fully guaranteed by the Hellenic Republic for use as collateral in Eurosystem monetary policy operations. Affected banks may satisfy their liquidity needs via the emergency liquidity assistance provided by national central banks. Marketable debt instruments issued or fully guaranteed by the Hellenic Republic will become eligible upon activation of the collateral enhancement scheme agreed by the Eurogroup on 21 July 2011. This is expected to take place by mid-March 2012. In the meantime, GGBs deposited as collateral at the ECB have to be substituted with new eligible instruments. This could weigh negatively on demand at the upcoming LTRO as it will absorb collateral that could have otherwise been used at the 3Y. This should affect more directly Greek banks.

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