People are keen to see more evidence of rates going up in Europe and further comments are helping the euro bulls. I don't see a big move in the euro coming yet though, while U.S. rates are still this high.
The yen has gained on the vote of confidence in the Japanese economy, and that rates may start to rise sooner than expected.
The retail sales report makes it more likely at the margin to cause rate cuts. The balance of risks is that the next BOE rates move is lower, which would be negative for sterling.
The signal that the Fed seemed to be sending yesterday is that they don't know where rates are going beyond March, hence the references to data-watching.
Interest rates are at their peak, but it's probably going to be some time before we see them coming down, probably another six months or so, ... an unhelpful factor...but is probably at its worst in terms of annual inflation now.