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GBP/USD held just above Friday's 3-month low early Monday in Europe amid fresh tensions in the Korean peninsula that fed the greenback with safe-haven demand while the sterling awaited a less important mortgage approvals data by the Bank of England, due later in the session.

British retail sales rose in November for a second consecutive month as consumer spending picked up ahead of a hike in value added tax (VAT) next year.

British citizens expect the inflation rate to continue to rise in 2011, according to a survey released by the Bank of England (BoE) on Thursday.

Employment rates remained mostly stable in the euro area during the third quarter, dropping only by 0.2 percent, while unemployment rate in the U.K. touched its highest since the beginning of the year.

Inflation continued to rise in the U.K. during November, remaining above Bank of England's (BoE) target for the ninth month, spurred by a hike in food and non-alcoholic drink prices, the Office for National Statistics reported on Tuesday.

UK households are struggling to pay off their debts despite low interest rates, said a survey on Monday.

U.K.'s producer prices index fell to 0.3 percent in November from 0.6 percent, mainly due to a rise in fuel and food prices, a report by the Office for National Statistics said.

Outside the US and UK - where today's no change decision from the Bank of England left interest rates near 33-year lows beneath inflation - emerging economies are also flirting with sub-zero real rates of interest, Japanese investment bank Nomura's London office notes.

The Bank of England (BoE) continued to maintain its base rate at 0.5 percent, as the economic recovery continues to remain uncertain and financial crisis continues to worsen in the eurozone.

U.K. Chancellor of the Exchequer George Osborne is defending the beleaguered Bank of England (BoE) governor Mervyn King, who has come under fire in recent weeks for allegedly having a lack of political neutrality.

UK factory orders continued to rise in December and the manufacturers expect the output growth to be robust in the next three months due to strengthening demand at home and abroad.

The euro currency might not survive the current sovereign debt crisis and may be in danger of collapse, according to Stephen Nickell, an economist at the independent Office of Budget Responsibility (OBR) member and former Bank of England member.

Among the many juicy tidbits revealed by the recently published Wikileaks documents were Bank of England chief’s Mervyn King’s concerns about Prime Minister David Cameron’s inexperience.

Manufacturing in the eurozone expanded in November at its fastest pace in four months, boosted by strong activity in France and Germany, while manufacturing production in the U.K. touched a 16-year high, according to a survey.

UK economy grew in the third quarter, boosted mainly by a strong increase in exports of goods and services.

UK factory orders rose more than expected in November, but the manufacturers expect the output growth to slow in the next three months.

Retail sales in the U.K. rose by 0.5 percent for the first time in three months during October, according to a report by the Office for National Statistics.

Inflation in the U.K. rose during October, mainly pushed by fuel and lubricant prices, a report by the U.K. Office for National Statistics.

Euro rose across the board and pulled off 1-1/2-month lows against the US dollar and British pound on Friday on news EU leaders reassured the holders of outstanding bonds that they would not be forced to take losses. The day's gains, however, did not prevent the single currency from heading for weekly losses versus the majors as investors are still worried that Ireland may default on its bonds.

The euro dropped across the board on Thursday as weak data from the region showed the crisis-hit EU member countries will continue to pressurize the single currency.

Mortgage approvals and consumer credit lending rose unexpectedly in July, but total net lending was its weakest since March, Bank of England figures showed on Tuesday.

The global recovery is fragile and policymakers in advanced economies might still have to provide further economic support, Bank of England Deputy Governor Charles Bean said on Saturday.

The Bank of England kept interest rates at a record low of 0.5 percent for the 13th month running on Thursday and made no increase to its 200 billion pounds asset-buying scheme to boost the economy.

Confusion confounded. That is the apt description for the global bullion markets now. Talk of gold, you will get a bunch of positive advices from market analysts saying that Indian festival and wedding seasons are round the corner and the demand for the metal is set to go up in the coming days.

The U.S. stock market tracked losses of worldwide assets as Europe and the U.S. reported gloomy data on Tuesday.

Futures on U.S. stock indices are lower Tuesday morning as global investors sentiments are dampened by discouraging developments from the Europe.

Sterling fell broadly on Tuesday, as Bank of England Governor Mervyn King said risks to the bank's central view of a gradual recovery remained to the downside and further quantitative easing may be needed.

The Australian Dollar opens on Monday at 0.8995 after a surprise rate raise in the United States last Friday (local time) sent the greenback soaring against several major currencies.

The Australian Dollar opens slightly lower today against its U.S. counterpart at 0.8755.