LONDON (AFX) - The euro was slightly higher against the dollar in early trade, with worries about the German economy slowing its recent gains, dealers. "The underlying fundamentals for the euro zone economy aren't too good, as we're seeing with the figures out of Germany, including this morning's retail sales data," Halifax currency strategist Steven Pearson said. German retail sales fell a real 2.3 pct in April from March and dropped a real 1.9 pct year-on-year. Last week, Germany posted PMI manufacturing and services figures of below the 50 threshold, showing both sectors are still contracting. Equally, German labour figures showed a bigger rise in jobless numbers than expected. Pearson predicted profit-taking on the euro in the first few days of the week, particularly if US equities arrest their slide. Bear Stearns economists said stock markets will remain the focus for investors this week, with economic data largely out of the limelight. Key figures for the US include Wednesday's Beige Book and Thursday's retail sales and producer price figures, while the euro zone data flow will be light. In the UK, dealers said this morning's producer price figures for May are unlikely to have much impact on sterling, which last week continued its slide against the euro. Elsewhere, dealers are expecting further intervention by Japanese authorities following Friday's weak first quarter GDP figures.