Markets Await Trichet for Interest Rate Clues; Lots of Data from the US and EU Today

Overnight, New Zealand released unemployment data, which was disappointing. We saw an increase in the rate to 6.8% against market expectations of 6.5%. The New Zealand Dollar was sold across the board, dropping nearly 100 points against its U.S. counterpart. The Australian trade data, however, did not match this trend as the surplus bettered market forecasts. Currency traders pushed the AUD/NZD back to weekly highs. The Australian trade data came in at 1981 million Aussie Dollars against expectations of 1600 million. In addition to this the previous month's data was revised upwards to 2078 million A Dollars after mining exports saw major declines due to the flooding in the northern part of the country. Adding to positive sentiment for the region was the building approvals number, which came in at 8.7% monthly for December after a drop of 3.9% during November. Even though markets had some fundamental data to trade off of, market activity was still relatively muted as Asia closed for the Lunar New Year holiday. We saw tight ranges in equity and currency markets. Ahead today, Europe has a heavy data calendar. Swiss trade balance and PMI from the EU service sector will be released along with Eurozone the retail sales report. The major speech of the day will come after the ECB meeting today, so most traders will be watching to see whether or not board members continue with their typically hawkish rhetoric. Any suggestions that interest rates will be raised will be seen as a negative for regional equities. During the U.S. session we have weekly jobless claims, non manufacturing ISM and new factory orders. Read the full post at

, where you can also find free guides to technical analysis, financial news, and reviews of spread betting companies such as

.