The U.S. Dollar recovered from the losses on Thursday as price action pulled back. On the economic front, German retail sales fell 4.3% which was more than the forecasted 1.5% decline.
The Eurozone’s fourth-quarter GDP report showed that the economy advanced by 0.2% on the period. Meanwhile, Italy’s GDP contracted by 0.2%. Data from the U.S. showed that new home sales rose 657k on the month beating estimates of 569k for the period.
Japan’s unemployment rate is at 2.4% which is better than the forecasts of 2.5%.
Swiss retail sales report is due at the start of the European trading session. Retail sales should rise by 0.1% for the year, following a 0.5% decline previously.
Manufacturing PMI from the Eurozone economies will come out later in the day. For the Eurozone, manufacturing PMI should see a headline print of 50.5. The Eurozone’s inflation estimates later follow this.
Headline inflation should increase by 1.4% on the month, marking a slower pace compared to 1.6% in December. Core CPI could remain steady at 1.0% increase on the year in January.
The NY trading session will see the monthly payrolls report coming out. Average hourly earnings might rise by 0.3% on the month in January, marking a slower pace of increase compared to 0.4% increase previously.
The U.S. unemployment rate should keep steady at 3.9%, while the average employment change might see 165k added jobs. Later in the evening, the ISM will be releasing its manufacturing PMI report.
Manufacturing activity, as measured by ISM should remain steady at 54.1 while manufacturing prices might decrease to 54.4 from 54.9 previously.
