Forex: Thursday’s review

The euro rose against the dollar, ending with the sixth month of growth, registering with the longest winning streak in nearly a decade, as risk appetite improved on speculation that the worst days of the crisis of sovereign debt in the euro area is over.

The single currency has reached its highest level since November 2011 after the release of data that showed that retail sales and unemployment fell. Note that the German unemployment unexpectedly fell in January, down to the level of 6.8% to 6.9%. Meanwhile, the number of people out of work fell a seasonally adjusted 16,000 to 2.92 million, while the projected growth would reach 8000. Meanwhile, retail sales in Germany, which are usually quite volatile index in December were worse than expected. In real terms, they fell from the previous month and compared with the same period last year. Retail sales adjusted for seasonal variations, the number of working days and inflation in December fell by 1.7% compared with November.

The dollar index (DXY) fell, registering with the second monthly fall, as a report showed that the number of applications for unemployment benefits rose more than expected. Well as the pressure on the index continues to yesterday's announcement by the Federal Reserve, according to which it was announced that it would continue to buy Treasury and mortgage bonds to stimulate the U.S. economy and reduce unemployment.

We also note that market participants expect the yield data on the number of jobs outside agriculture in the USA, which are considered an indicator of the health of the world's largest economy. Stronger-than-expected data on the number of jobs in the private sector in the U.S., released on Wednesday, raised expectations that the employment report on Friday will also be quite positive.