The dollar weakened against its peers today on Presidents’ Day holiday with US markets closed and thin volume traded as poor US economic data released on Thursday and Friday of last week continued to put pressure on the dollar. Consumer sentiment index declined from 98.1 in January to 93.6 in February as US retail sales dropped suddenly in January by 0.8% following a 0.9% decline in December.

The euro strengthened against the dollar as the market remained watchful as members of the European Union and Greek officials were set to hold meetings today in another attempt to reach an agreement on Greece’s debt issue. Data released out of the euro zone on Friday revealed that the area’s trade surplus increased from 21.1 billion euros in November to 24.3 billion in December.

The pound weakened against the dollar after having gained ground to near 6 week highs as the recent series of lackluster US data weighed in on the greenback. The pound had gained momentum last week following remarks from the Bank of England which highlighted that it expects inflation to hit negative territory by mid-year despite there being no heightened risk of deflation. The pound was also weaker against the euro.

The yen strengthened against the dollar following the release of economic data which revealed that the Japan economy was restored to growth in the last quarter of 2014 although gains were less than what was forecast. Japan’s GDP grew at an annual rate of 2.2% in the last quarter while experts had predicted growth of 3.7%.

The Australian and New Zealand dollars strengthened while the Canadian dollar weakened against the dollar. The kiwi dollar was supported by figures which revealed that retail sales increased by 1.7% for the last quarter of 2014 following an increase of 1.6% in the 3rd quarter, ahead of forecasts for an increase of 1.3%.

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