The common currency shed more than 2 cents on the week, reversing sharply from a relief rally that had moderately encouraged some traders. Although successful debt auctions in Italy, France and Germany showed investors still have an appetite for European debt, the euro was unable to overcome the pessimism that has walloped markets worldwide for the last two years.
The euro's woes deepened after data showed U.S. employment accelerated in December by more than 200K jobs, which drove unemployment to its lowest level since February 2009. While encouraging data normally leads investors to buy riskier stocks and currencies, the figures bolstered the greenback across the board.
As Italy's benchmark government debt lodged above 7%, traders abandoned the common currency, driving it briefly below $1.27 for the first time since September 2010. The euro zone's third largest economy has pressed forward with austerity measures to restore investor confidence, yet its efforts have yet to quell selling pressure on its debt markets that could prompt it to seek a bailout of its EUR2 trillion bond market.
This is a list of the major events (News) for Monday – January 9, 2012 that will move the forex markets around the globe :
* AUD – Retail Sales : at 12:30am
It’s the primary gauge of consumer spending, which accounts for the majority of overall economic activity.
Previous 0.2%, Forecast 0.4%
* CHF – Retail Sales : at 8:15am
It’s Measures; Change in the total value of inflation-adjusted sales at the retail level, excluding automobiles and gas stations.
Previous -0.2%, Forecast 0.6%
* CAD – Building Permits : at 1:30pm
It’s an excellent gauge of future construction activity because obtaining a permit is among the first steps in constructing a new building.
Previous 11.9%, Forecast -3.1%
* CAD – BOC Business Outlook Survey : at 3:30pm
It’s a leading indicator of economic health – businesses react quickly to market conditions, and changes in their sentiment can be an early signal of future economic activity such as spending, hiring, and investment.
* NZD – Building Consents : at 9:45pm
It’s a leading gauge of future construction activity because obtaining government approval is among the first steps in constructing a new building. Construction is important because it produces a wide-reaching ripple effect – for example, jobs are created for the construction workers, subcontractors and inspectors are hired, and various construction services are purchased by the builder.
Previous 11.2%, Forecast
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