By: Alex Brandt
Highlights:
USD/JPY - Japanese industrial production rose and unemployment fell
AUD/USD - Breaks support at .89 but lacked momentum to continue
Euro zone Economic data for today:
09:00 GMT: Italian PPI for December expected +0.1% m/m, -1.5% y/y
09:00 GMT: Euro zone M3 money supply for December expected -0.1% m/m, -0.5% y/y
09:00 GMT: Euro zone unemployment for December expected 10.1% from 10.0%
10:00 GMT: Italian unemployment for December 8.4% from 8.3%
10:00 GMT: Euro zone CPI y/y for January expected +1.2%
European stocks seen opening marginally firmer
Release of Q4 US GDP later today.
Deflation pressures remains a concern for Japan based on decline in consumer prices and the yen’s 8 percent climb in the past nine months which are forcing policy makers to remain open to further stimulus. Despite Japans massive debt load of 973 Trillion yen (a ratio of 200% to GDP compared to the US 90%) traders are still driving Yen crosses lower on risk aversion fears. As for Australia, 80% of economist surveyed are expecting the RBA to raise rates to 4% next Tuesday. Australia continues to be the best performer of the developed economies. Goldman Sachs and JP Morgan Chase have increased their US GDP expectations from 4.5% to 5.7%, I'm beginning to wonder what they are smoking over there. Some of Novembers data has been revised downward and coupled with weak economic data for December, I don't see how anyone could expect the US GDP to grow 4.5% much less 5.7%. Maybe I'm being overly pessimistic, but none the less I expect the US GDP report to disappoint the market. Good luck today and many pips!