Monday February 8; Labor Market Conditions Index (US), Industrial Production (GER). The Unemployment Rate will be released on Tuesday by the Swiss State Secretariat for Economic Affairs (SECO). This week, Federal Reserve Chair Janet Yellen will be on Capitol Hill for two days of testimony, appearing before the House Financial Services Committee on Wednesday and the Senate Committee on Banking, Housing, and Urban Affairs on Thursday. RBA Governor Glenn Stevens will give a press conference as to how the RBA observes the current Australian economy and the value of AUD on Thursday. The Gross Domestic Product will be released by the Eurostat on Friday.
USD suffered one of its most abrupt swoons in years until NFPs stabilized the currency. GBPUSD showed some strong movement during the week, but closed the week unchanged, at 1.4240. After weeks of boring ranges, EURUSD broke higher like a vengeance, adding pretty much 330 pips in two days. Discussion of further reduction in Fonterra dairy milk pay-outs, further marginalizing farm incomes, favors additional NZD downside, not least amidst presumptions of the RBNZ being forced to close the spread differential with Australia. The RBA proactive policy has facilitated the AUD adjustment and this has provided an important buffer to the economy. Weekly outlook remains bearish on USDCHF. CAD flexed some muscle during the week, climbing to its highest levels since early December. JPY rebounded in spectacular fashion last week, as USDJPY plunged 470 points.
UK economy had slowed slightly and there was some pessimism from general market volatility. With oil hovering at 30.00 a barrel, the pleasure of lower fuel prices is turning painful for more of the U.S. economy. Following a stock market slowdown in August 2015 that saw the Shanghai Composite fall 8.5%, the Chinese economy continues to struggle amid continuing uncertainty, as labor unrest and lagging GDP growth spread throughout the vast country. Japan economy rose 0.3% in the third quarter. Although monetary policy has done a lot for the euro zone economy, it cannot create sustainable economic growth, Bundesbank President Jens Weidmann and Bank of France Chief Francois Villeroy de Galhau wrote.