Sterling advances after data, US PPI in focus now.

Earlier in the day, the UK industrial production for June weakened to 8.3% year-on-year, down from 20.7% in May, also below forecasts of 9.4%. Manufacturing production also fell, from 28.2% to 13.9%, but it came above the consensus.

Additionally, the UK monthly GDP improved to 1%, from 0.6% previously.  The GBPUSD pair rose some 20 pips after the numbers and was trading near 1.3870.

Later in the day, the eurozone industrial production will be released, possibly influencing the EURUSD pair, which continues to trade near its key support of 1.1750.

During the US session, PPI indices are expected to moderate but should remain way above the 2% inflation target. Furthermore, US jobless claims will be released as well.

On Wednesday, the US consumer price index increased 0.5% last month after climbing 0.9% in June, the largest drop in the month-to-month inflation rate in 15 months. The core CPI rose 0.3% after increasing 0.9% in June. Monthly changes showed some slowdown, but yearly changes remain absolutely elevated, putting pressure on the Fed to taper its QE program.