The sterling is strengthening in currency trading on the FX market today. Indeed, the pound is heading higher in forex trading as risk appetite makes an appearance.

The pound has moved through the 1.51 level, and is looking for support on the FX market. Help is coming from the fact that the euro is higher in forex trading, and U.S. retail sales are showing improvement. These are leading forex traders are looking for higher returns as they gain a little confidence.

There are still concerns about U.K. debt, but worries about sovereign debt in general are subsiding a bit since concerns over Greece are abating.

The euro is heading higher in forex trading on the currency market today as things improve in terms of global economic data. Helping the euro right now is the fact that U.S. retail sales showed improvement in February. This has many speculating that the U.S. really is on the road to recovery, and risk appetite is returning.

Also helping the euro is the fact that the euro zone nations are putting together plans to help prevent another sovereign debt debacle like Greece. And concerns about the Greek financial contagion are abating. GFT's Boris Schlossberg reports in FX360 on events in the euro zone:

Euro continued its short covering rally into the weekend, clearing the key 1.3740 level after several European officials lent their support to the creation of a European Monetary Fund that would be able to deal more effectively with future funding crises of its member nations.