European session:

The euro gained versus the dollar, extending a second weekly advance, after a report showing German exports rose the most in five months boosted bets that policy makers will lift interest rates further to curb inflation.
A report today showed German exports jumped 2.7 percent in February from a month earlier, when they dropped 1 percent. That was the biggest month-on-month increase since September.
“You can’t ignore the yield story with the euro,” said Chris Walker, a foreign-exchange strategist at UBS AG in London. “The incentive for the ECB to raise rates is going to keep the euro supported. The main justification for rate hikes in the euro zone has been that the German economy is motoring ahead.”
 The European Central Bank yesterday raised its main refinancing rate to 1.25 percent from a record-low 1 percent and left the door open for further increases.
The ECB’s decision to raise its main rate yesterday comes as the central banks of other developed nations, including the U.S. and Japan, keep borrowing costs near zero to support their economies as they recover from the financial crisis. The Federal Reserve is not expected to raise its target funds rate until the first quarter of 2012 and the Bank of Japan will probably keep borrowing costs on hold for the next 12 months, the median estimates in two Bloomberg surveys show.

EUR/USD: trades above $1.4400.

USA Wholesale inventories data are due at 14:00 GMT.