The euro slipped as Greece slowly makes its way back into the headlines, providing a fresh reminder for investors that the prospect of Athens dropping out of the single currency is still very much alive.

The weight of money-printing expectations also lightened for the British pound after less dovish than expected minutes from the Bank of England. Sterling climbed to near two-week highs against a weaker euro, buoyed further by another fall in Britain’s unemployment rate, reflecting how the Olympic Games has given the UK economy a boost.

Europe will release final inflation figures before investors face up to another long list of US economic indicators. Data on building permits and housing starts will give analysts insight into consumer demand for big-ticket purchases but perhaps more significant will be the release of weekly jobless claims figures.

Sterling

The pound moved to within striking distance of a two-week high against the euro after notes from the BoE’s most recent gathering. Doubts that the BoE would introduce more money-printing at its next meeting to prop up the economy then grew further after Britain’s overall jobless rate dropped by0.1 per cent to eight per cent in the three months to June, another sign of how the London Olympics Games has added a little petrol to the economy’s fuel tank.

US dollar

The US dollar took another leap forward after data on US industrial output in July printed higher than expected, cutting shorter the line of investors expecting the Federal Reserve to engage with more quantitative easing in September. Production improved by 0.6 per cent in July, edging forecasts of a 0.5 per cent increase and follows similarly bullish reports on US employment and retail sales in recent weeks. Adding to fresh signs the economy may steady without new automatic stabilisers from the Federal Reserve, a measure of home building sentiment released surged to over five year highs in August.

Euro

Greece is back on the minds of investors on widespread reports that its government may be using its latest growth figures to gain an extension on its bailout. The Greek economy contracted by a mammoth 6.2 per cent in the second quarter on an annual basis, making it almost impossible for Athens to sanction deeper spending cuts while keeping up with repayments to its international lenders.