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

The U.S. dollar traded lower against the most major currencies after the weaker-than-expected U.S. retail sales data. The U.S. retail sales dropped 0.8% in January, missing expectations for a 0.3% decrease, after a 0.9% decline in December.

Retail sales excluding automobiles fell 0.9% in January, missing forecasts for a 0.4% decrease, after a 0.9% drop in December. December's figure was revised up from a 1.0% decline.

The decline was driven by gasoline station sales and clothing stores sales.

The number of initial jobless claims in the week ending February 07 in the U.S. rose by 25,000 to 304,000 from 279,000 in the previous week. The previous week's figure was revised down from 278,000. Analysts had expected the number of initial jobless claims to decrease to 278,000.

The U.S. business inventories rose by 0.1% in December, after a 0.2% gain in November. Analysts had expected a 0.2% increase.

The euro traded higher against the U.S. dollar despite the euro group of finance ministers meeting has ended without an agreement on extending the Greece's bailout. The next meeting is scheduled to be on Monday.

Industrial production in the Eurozone was flat in December, missing expectations for a 0.3% increase, after a 0.1% rise in November. November's figure was revised down from a 0.2 increase.

On a yearly basis, Eurozone's industrial production fell 0.2% in December, missing expectations for a 0.3% rise, after a 0.8% drop in November. November's figure was revised down from a 0.4 decrease.

The British pound traded higher against the U.S. dollar as the Bank of England (BoE) Governor Mark Carney said that the central bank could hike its interest rate sooner than expected.

The central bank expects the consumer price inflation in the U.K. to be at around zero in the second and third quarters this year before starting to increase towards the end of 2015.

The BoE said that it could lower interest rates below 0.5% or could expand its £375 billion asset buying programme if inflation remained below target for a longer period.

The Canadian dollar rose against the U.S. dollar despite the weaker-than-expected Canadian new housing price index. New housing price index in Canada rose 0.1% in December, missing expectations for a 0.2% gain, after a 0.1% increase in November.

The increase was driven by gains in the Toronto region where prices rose 0.2%.

The New Zealand dollar increased against the U.S. dollar. In the overnight trading session, the kiwi traded lower against the greenback after the weak Business NZ manufacturing purchasing managers' index from New Zealand. The index declined to 50.9 in January from 57.1 in December. December's figure was revised down from 57.7.

The Australian dollar climbed against the U.S. dollar. In the overnight trading session, the Aussie dropped against the greenback after the weaker-than-expected labour market data from Australia. Australia's unemployment rate rose to 6.4% in January from 6.1% in December, missing expectations for a rise to 6.2%. That was the lowest level since August 2002.

The number of employed people in Australia dropped by 12,200 in January, missing expectations for a decrease by 4,700, after a gain by 42,400 in November. December's figure was revised up from an increase by 37,400.

The Melbourne Institute's consumer inflation expectations for Australia increased to 4.0% in February from 3.2% in January.

The Japanese yen increased against the U.S. dollar. In the overnight trading session, the yen traded mixed against the greenback after the mixed economic data from Japan. Japan's core machinery orders jumped 8.3% in December, exceeding expectations for a 2.4% increase, after a 1.3% rise in November.

On a yearly basis, Japan's core machinery orders surged 11.4% in December, beating forecasts of 5.9% rise, after a 14.6% drop in November.

Japan's preliminary machine tool orders fell to 20.4% in January from 33.9% in December. December's figure was revised up from 33.8%.