EUR/USD
The euro held steady against the dollar on Thursday despite preliminary data showing that Germany fell into deflation for the first time since July 2009 this month. Germany’s statistics bureau reported that the annual rate of consumer inflation fell 0.3% in January, slowing from 0.2% in December and worse than forecasts for a decline of 0.2%. In the euro zone, Germany's Federal Statistics Office said the number of unemployed people declined for the fourth consecutive month in January, falling by 9,000, compared to expectations for a drop of 10,000. The report showed that Germany’s unemployment rate hit a record-low 6.5% in January, down from 6.6% in December, in line with expectations.
GBP/USD
The pound edged lower against U.S. dollar on Thursday, trading close to recent multi-month lows after data showed that U.K. house prices rose as expected this month and after the Federal Reserve indicated that interest rates could start to rise around mid-year. In a report, the Nationwide Building Society said that U.K. house price inflation rose 0.3% this month, in line with expectations, after a 0.2% uptick in December. Year-on-year, the U.K. house prices rose 6.8% in January, exceeding expectations for an increase of 6.6%, after a 7.2% gain the previous month.
USD/JPY
The yen mostly steady on Thursday in mixed moves after the Federal Reserve said overnight the U.S. economy was expanding at a solid pace as it largely looked through weakness overseas in a signal that it remains on track to raise interest rates later this year.
