NEW YORK ( BBH) -- The U.S. dollar remains largely unchanged in the Asian session yet sold off sharply against most European currencies following the record jump in German January IFO.

The euro reached an eight-week high before being capped out ahead of $1.357 with the strong German data supporting German yields and thus widening the spread against the dollar. Cable hit session lows under $1.595 after December retail sales dropped 0.8% month on month and was the worst December on record due to a sharp drop in food and fuel demand.

The dollar traded at session lows of 82.72 yen amid a broadly softer tone, while the EUR/JPY neared a five-week high ahead of the 200-day moving average.

Meanwhile, the New Zealand dollar, the weakest performer against the dollar in the G10, was unable to sustain earlier gains following a disappointment in core retail sales, while the Australian dollar has been unable to sustain rallies above parity.
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