The euro gained against the greenback on Thursday despite dismal economic data from Germany. Indeed, German industrial output plunged 7.5 percent in January - the most since record-keeping began in 1978 - which also brought the annual rate down to a record low of -19.3 percent. The declines suggest that the export-dependent economy is feeling the impact of the recessions that their biggest trade partners are experiencing in the rest of the Euro-zone, the UK, and the US. On Friday, data is forecasted to show that retail sales in the Euro-zone rose a slight 0.2 percent in January, though the annual rate of growth is anticipated to drop to -2.3 percent from -1.5 percent. Based on Germany’s retail sales report from the same period though, Friday’s results could actually be worse than expected. As the Euro-zone’s biggest economy, Germany’s economic data can sometimes serve as a good leading indicator, and their latest retail figures show that spending unexpectedly fell 0.6 percent in January while the annual rate plunged to -1.3 percent from 0.4 percent. Disappointing Euro-zone results could have a negative impact on the euro in the short-term, though this does not tend to be a huge market-mover for the currency much beyond the release time.
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