The US dollar fell after a surprisingly weak retail sales and jobs reports. The euro gained against the dollar as a result. Interestingly, the euro barely moved after Italy’s Prime Minister said he will resign on Friday, paving the way for a third administration in 12 months.
The sterling continued its climb after the Bank of England’s upbeat read on the economy, in contrast to the cloudy US outlook.
The Aussie retreated after unemployment rose to the highest in 10 years. Companies had 3,700 fewer names on payrolls in January, sending the unemployment rate up to 6%. Reserve Bank of Australia Assistant Governor Christopher Kent downplayed the disappointment, saying joblessness tends to lag economic activity.
The Indonesia rupiah jumped after Bank Indonesia said the current account deficit was 1.98% of GDP in 4Q, nearly half that the last quarter. BI also kept policy rates at 7.5%.
