Valeria Bednarik, chief analyst at FXStreet explained that the common currency extended its rally to a fresh 4-month high against the greenback of 1.1375 this Thursday, as tumbling stocks and fresh multi-year lows in oil's prices fueled risk aversion trading. Key Quotes: "The movements were led by the Japanese yen that strengthened during the Asian session, in spite Japanese markets were close due to a local holiday, after FED's Yellen's delivered a cautious speech in the previous session. There were no fundamental releases in Europe, but in the US a positive surprise come from the weekly unemployment claims release, down to 269K for the week ending February 5, while Sweden's Riksbank surprised the market by delivering a 15bp rate cut today to take the repo rate to minus 50bp, fueling the negative mood among investors mid European session. The pair retreated partially from the mentioned daily high, but remains firmly above 1.1300, consolidating its latest gains, and overall maintaining the bullish tone. That trend will be challenged during the upcoming European session, with the release of several macroeconomic figures, which include German inflation and the EU Gross Domestic Product. Should the data surprise to the upside, the pair can continue rallying up to 1.1460, particularly if the dollar retains the negative tone." For more information, read our latest forex news.