Today, we expect volumes to start to increase and volatility is expected to return gradually, especially with the heavy load of fundamentals awaited this week. However, eyes will be focused today on the unemployment report fromGermanyand the ISM manufacturing from theUnited States.
The pair’s movement today depends on the awaited critical fundamentals and also on any comments or actions from European lawmakers.
Germanywill start the session at 08:55 GMT with the unemployment report of December, where the seasonally adjusted unemployment rate is expected unchanged at 6.9%, while unemployment is expected to decline by 10 thousands compared with the previous decline of 20 thousands.
TheUnited Stateswill join the session at 15:00 GMT with the Construction Spending Monthly Index for November, which could have expanded by 0.5% from 0.8%.
USD- U.S. ISM Manufacturing PMI- Purchasing Managers Index, a leading indicator of economic conditions in the U.S. measuring activity in the manufacturing sector of the economy, Tues., Jan. 3, 10:00 am, ET.
In contrast to the Euro-zone manufacturing, the U.S. manufacturing activity is forecast to register another month of expansion with a reading of 53.3 in December, compared with 52.7 in the previous month.
USD- U.S. FOMC Meeting Minutes, a detailed record of the Fed’s meeting offering insights on future monetary policy and economic outlook Tues., Jan. 3, 2:15 pm, ET.
The Fed has been very clear on where they stand on future monetary policy and the economy. Expect the minutes to confirm the Fed’s cautious economic outlook and the commitment to continue their accommodative monetary policy with QE3 ready to be deployed if economic conditions deteriorate or if the EU debt crisis takes a turn for the worse.
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