- Retail Sales (MoM) (GB, 09:30 GMT)
- Manufacturing Sales (MoM) (Can, 13:30 GMT)
- Michigan Consumer Sentiment (U.S, 14:55 GMT)
The number of Americans filing first-time claims for unemployment insurance payments fell more than forecast last week to the lowest level in five years, pointing to further improvement in the labor market. In addition, The U.S. homebuilding accelerated in December, capping the best year for the industry since 2008 and adding to signs residential real estate is contributing to economic growth. On the other hand, manufacturing in the Philadelphia region unexpectedly contracted in January, an indication companies are becoming more concerned about across-the-board U.S. government spending cuts that could slow growth.
Bank of Japan (8301) Governor Masaaki Shirakawa will meet Finance Minister Taro Aso and Economy Minister Akira Amari today in Tokyo, according to people familiar with the meeting. The Mainichi newspaper reported today that the three will discuss an accord between the government and the central bank. Prime Minister Shinzo Abe’s administration anticipates the BOJ will adopt a 2 percent target for inflation at its January 21-22 gathering, Vice-Finance Minister Shunichi Yamaguchi said yesterday.
China’s economic growth accelerated for the first time in two years as government efforts to revive demand drove a rebound in industrial output, retail sales and the housing market. Gross domestic product rose 7.9 percent in the fourth quarter from a year earlier, the National Bureau of Statistics said in Beijing today.
EUR/USD: The EUR/USD was trading higher at 1.33874 at the time of writing as positive economic data in the U.S, sparked demand for risky assets. In addition, the EUR got support after Spain’s Treasury sold EUR4.5 billion worth of debt, in line with the full targeted amount amid heavy turnout yesterday, underscoring increased confidence in European debt markets. Market sentiments seem bullish but investors should remain prudent as there may be some market corrections intra trade.
Economic events likely to bring some fluctuations in the Eurozone are the Spanish industrial New Orders (YoY) (Forecast: 2.5% - Previous: 5.5%), the Italian Industrial New Orders (MoM) (Forecast: 2.0% - Previous: 0.0%), the Italian Industrial Sales (MoM) and the Spanish House Price Index (YoY) (Forecast: -10.00% - Previous: -9.30%). While later in the day, the U.S will release the Michigan Consumer Sentiment (Forecast: 75.0 - Previous: 72.9). Positive data from Europe and the U.S will fuel demand for risky assets. The resistance level is at 1.34551 and the support level is at 1.33352.
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GBP/USD: The GBP/USD was trading at 1.59841 at the time of writing as concerns over the outlook for growth in the U.K. continued to weigh on demand for sterling, despite upbeat U.S. economic reports. The U.K. economy contracted in the fourth quarter and may risk slipping back into recession in the first three months of 2013, according to an e-mailed report from London-based Fathom Financial Consulting yesterday.
Market sentiments remain bearish on the GBP but the pair is likely to suffer some market corrections intra trade. Event likely to bring some volatility on the European session is the Retail Sales (MoM), which is expected to come to 0.2% compared to 0.0%. Later in the day, the U.S will release the Michigan Consumer Sentiment (Forecast: 75.0 - Previous: 72.9). Investors should wait for the Retail Sales data in the UK get more visibility. The resistance level is at 1.60393 and the support level is at 1.59537.
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Gold: Gold was trading higher at 1689.85 at the time of writing after the economic growth accelerated in China. Gold found support after a report showed manufacturing in the Philadelphia area unexpectedly contracted in January, increasing pressure on the U.S. central bank to expand stimulus.
The commodity seems on its way to test the key level of 1700.00 today. Events likely to bring some fluctuations on the price of gold in the Eurozone are the Spanish industrial New Orders (YoY) (Forecast: 2.5% - Previous: 5.5%), the Italian Industrial New Orders (MoM) (Forecast: 2.0% - Previous: 0.0%), the Italian Industrial Sales (MoM) and the Spanish House Price Index (YoY) (Forecast: -10.00% - Previous: -9.30%). While the U.S will release the Michigan Consumer Sentiment (Forecast: 75.0 - Previous: 72.9). Gold and USD often trade inversely to one another. The resistance level is at 1702.79 and the support level is at 1666.92.