The single currency rose to 1.3562 in Asian morning before slipping back on profit taking. In Europe, retail sales in Germany fell for a second month in February as bad weather and concern that unemployment may rise kept consumers at home. German retail sales came in at -0.4% m/m and -0.9% y/y respectively versus the expectation of -0.1% m/m n -1.0% y/y and the downwardly revised readings of -0.5% n -4.0% in January. However, Europe’s manufacturing industry expanded at a faster pace than initially estimated in March, adding to signs that a euro-area recovery is gaining strength as manufacturing index for the 16 nations that use the euro increased to 56.6 from 54.2 in February. The single currency briefly hit an intra-day low of 1.3460 in NY morning before staging a strong rise on active cross-buying in euro. Price eventually climbed above Wednesday high of 1.3549 to 1.3592 in late NY afternoon.
Cable extended Wednesday's gain and rose to an intra-day high of 1.5300 in NY morning on active cross-buying in sterling. Higher-than-expected U.K. CIPS manufacturing PMI which came in at 57.2 in March versus economists' forecast of 56.8 from downwardly revised 56.5 in February have helped underpinning the cable.
Versus the Japanese yen, the greenback hit an intra-day low of 93.28 in Asian morning but found support there. The pair rebounded and rose above the 2010 high of 93.77 before the U.S. jobless claim data. U.S. jobless claims fell to 439,000, which is slightly less than economists' forecast of 440,000, from prior week upwardly revised 445,000. The pair eventually hit a seven-month high of 94.05 in NY morning before stabilizing.
Eur/chf cross rate rebounded strongly on speculation the Swiss National Bank sold the currency after it weakened to a record low for the second straight day. The cross pair tumbled to a new record low of 1.4144 in NY morning but rebounded quickly and sharply from there. Price eventually rallied to 1.4412 in less than an hour before retreating on profit taking. The SNB declined to comment on the rumored intervention
Economic data to be released on Friday include: U.S. Non-farm payroll and unemployment rate on Friday.