http://www.dailyfx.com/forex/fundamental/daily_briefing/session_briefing/euro_open/2011/01/07/FOREX_European_Data_off_the_Radar_All_Eyes_on_US_Jobs_Report0.html
Key Overnight Developments
- Euro, British Pound Drift Lower vs US Dollar in Overnight Trade
- New Zealand Dollar Outperforms But Recent Range Remains Intact
Critical Levels
| CCY | SUPPORT | RESISTANCE |
| EURUSD | 1.2917 | 1.3107 |
| GBPUSD | 1.5352 | 1.5525 |
The Euro and the British Pound extended NY-session losses into overnight trade, sliding as much as 0.3 and 0.4 percent against the US Dollar. We remain short EURUSD.
Asia Session Highlights
| CCY | GMT | EVENT | ACT | EXP | PREV |
| CNY | 2:00 | Business Climate Index (4Q) | 138.0 | - | 137.9 |
| CNY | 2:00 | Entrepreneur Confidence Index (4Q) | 137.0 | - | 135.9 |
Currency markets were quiet in overnight trade, with the major currencies not far removed from familiar levels as a lackluster economic calendar allowed traders to settle in ahead of the all-important US jobs report due late into European hours. The New Zealand Dollar narrowly outperformed, rising against all of its top counterparts, but prices remained within the confines of the wide range below the 0.76 figure to the greenback that had been carved out over the preceding 24 hours.
Euro Session: What to Expect
| CCY | GMT | EVENT | EXP | PREV | IMPACT |
| GBP | - | New Car Registrations (YoY) (DEC) | 3.7% | 3.6% | Low |
| CHF | 6:45 | Unemployment Rate (DEC) | 3.5% | 3.6% | Medium |
| CHF | 6:45 | Unemployment Rate s.a. (DEC) | 1.0% | -1.3% | Low |
| EUR | 7:00 | German Exports s.a. (MoM) (NOV) | 1.0% | -1.1% | Low |
| EUR | 7:00 | German Imports s.a. (MoM) (NOV) | 1.6% | 0.3% | Low |
| EUR | 7:00 | German Current Account (euros) (NOV) | 15.5B | 11.7B | Medium |
| EUR | 7:00 | German Trade Balance (euros) (NOV) | 15B | 14.2B | Low |
| EUR | 7:00 | German Retail Sales (YoY) (NOV) | 3.0% | -0.7% | Low |
| EUR | 7:00 | German Retail Sales (MoM) (NOV) | 1.0% | 0.2% | Medium |
| EUR | 7:45 | French Central Government Balance (euros) (NOV) | - | -133.1B | Low |
| EUR | 7:45 | French Trade Balance (euros) (NOV) | - | -3431 | Low |
| EUR | 9:00 | Italian Unemployment Rate (SA) (NOV P) | 8.6% | 8.6% | Low |
| EUR | 10:00 | Euro-Zone Gross Domestic Product (QoQ) (3Q F) | 0.4% | 0.4% | Medium |
| EUR | 10:00 | Euro-Zone Gross Domestic Product (YoY) (3Q F) | 1.9% | 1.9% | Medium |
| EUR | 10:00 | Euro-Zone Gross Fixed Capital (QoQ) (3Q F) | 0.0% | 0.0% | Low |
| EUR | 10:00 | Euro-Zone Government Expenditure (QoQ) (3Q F) | 0.4% | 0.4% | Low |
| EUR | 10:00 | Euro-Zone Household Consumption (QoQ) (3Q F) | 0.3% | 0.3% | Low |
| EUR | 10:00 | Euro-Zone Unemployment Rate (NOV) | 10.1% | 10.1% | Medium |
| EUR | 11:00 | German Industrial Production (YoY) (NOV) | 10.9% | 11.7% | Medium |
| EUR | 11:00 | German Industrial Production (MoM) (NOV) | -0.1% | 2.9% | Medium |
Another hefty dose of economic data is set to cross the wires in European hours, but a focus on macro-level issues are likely to see the outcomes pass below the radar as the spotlight falls on the Euro Zone debt crisis and the official set of US Employment figures.
In Europe, the latest sore spot is Belgium, where credit-default swap spreads (the cost of insuring against a sovereign default) jumped to a record high after policymakers failed to re-start talks on forming a proper government a full seven months after the general election.Belgium has the dubious honor of having Europe’s third-largest debt burden; if current political turmoil forces a credit downgrade, the EU may have another bailout candidate on its hands.
Meanwhile, US employment figuresare expected to show that the world’s largest economy added 150,000 jobs in December while the unemployment rate fell to 9.7 percent, reinforcing hopes for the emergence of a resurgent United States as the driver of global growth in 2011.
Scanning the data docket, the final revision of third-quarter Euro Zone Gross Domestic Product figures is expected to confirm the economy added 0.4 percent in the three months through September while the Unemployment Rate held at a record-high 10.1 percent. German Retail Sales are forecast to rise 1 percent – the most in six months – but the possibility for a disappointing outcome seems high after yesterday’s soft region-wide result. With that said, the Current Account reading may offer a bit of support, with the surplus set to widen to 15.5 billion euro on the back of a rebound in exports in November. The result follows yesterday’s impressive Factory Orders reading, with the two taken together promising to offset a narrow drawdown in Industrial Production over the same period.
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