Market movers today
The main event is the US employment report for January, which we expect to show continued solid job growth. We look for a total increase of 215,000 with 200,000 new jobs in the private sector and 15,000 new government jobs. Average hourly earnings fell steeply in December and we look for a rebound in January. We expect the unemployment rate to remain steady at 5.6%. Solid job growth and a rebound in wage inflation should make the Fed more comfortable with starting the normalisation process this year.
German industrial production is expected to have increased in December and the strong factory orders released yesterday give upside risk to our slightly above consensus forecast. The latest euro area figures have generally confirmed our view of stronger growth in 2015. We look for 1.5% (consensus 1.1%).
Switzerland's foreign currency reserves for January will reveal whether the SNB has continued to intervene. Earlier this week sight deposit figures suggested the SNB is not hands-off CHF.
In Scandi the DKK will be watched closely following the further steps from Danmarks Nationalbank yesterday. Norway publishes industrial production figures.
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