Foreign exchange market. American session: the U.S. dollar traded mixed to lower against the most major currencies after the weaker-than-expected U.S. retail sales

The U.S. dollar traded mixed to lower against the most major currencies after the weaker-than-expected U.S. retail sales. The U.S. retail sales unexpectedly dropped 0.9% in December, missing expectations for a 0.2% increase, after a 0.4% gain in November. November's figure was revised down from a 0.7% rise.

Retail sales excluding automobiles fell 1.0% in December, missing forecasts for a 0.1% gain, after a 0.1% gain in November. November's figure was revised down from a 0.5% increase.

The decline was driven by gasoline station sales.

The U.S. business inventories rose by 0.2% in November, in line with expectations, after a 0.2% gain in October.

The euro traded higher against the U.S. dollar, recovering its losses after the ruling of European Court of Justice (ECJ) on Wednesday. The ECJ said that Outright Monetary Transactions (OMT) bond-buying programme was legitimate and in line with monetary policy. The opinion was non-binding. A final decision is expected in the next six months.

The OMT programme was has been announced in September 2012. The programme allows the ECB to purchase government bonds of Eurozone members if they request help. The OMT programme has never been used.

The opinion by the ECJ probably paved the way for the launch of bond-buying programme by the European Central Bank.

The European Central Bank President Mario Draghi in an interview to the German newspaper Die Zeit released on January 14, 2015 that "all members of the Governing Council of the ECB are determined to fulfil our mandate". He added that the ECB's options were limited.

Industrial production in the Eurozone rose 0.2% in November, exceeding expectations for a flat reading, after a 0.3% rise in October. October's figure was revised up from a 0.1 increase.

On a yearly basis, Eurozone's industrial production fell 0.4% in November, beating expectations for a 0.9% drop, after a 0.8% gain in October. October's figure was revised up from a 0.7 increase.

The British pound traded higher against the U.S. dollar in the absence of any major economic reports from the U.K.

The New Zealand dollar traded higher against the U.S. dollar in the absence of any major economic reports from New Zealand. In the overnight trading session, the kiwi traded mixed against the greenback. Falling oil prices weigh on the kiwi.

The Australian dollar traded higher against the U.S. dollar. In the overnight trading session, the Aussie traded lower against the greenback in the absence of any major economic reports from Australia. Falling oil prices weigh on the Aussie.

The Japanese yen traded mixed against the U.S. dollar. In the overnight trading session, the yen traded higher against the greenback due to risk aversion.

Japan's preliminary machine tool orders fell to 33.8% in December from 36.6% in November.