Canada Sheds 34.4K Jobs In December, Unemployment Rate Hits Three-Year High

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USDCAD – The Canadian economy shed 34.4K jobs in December after losing 70.6K jobs in the previous month, which raised the annual rate of unemployment to a three-year high of 6.6% from 6.3% in November. The downturn in the global economy paired with financial uncertainties have dragged on growth throughout the fourth quarter of 2008, and as the U.S., Canada’s biggest trading partner, faces its longest recession in over a quarter century, employment conditions are likely to get worse throughout the first half of this year. Discuss the topic and your trade ideas in the USD/CAD Forum.

EURUSD – Retail spending in the Euro-Zone increased 0.6% in November after falling 1.0% in the previous month, and raised the annual rate of consumption to -1.5% from a revised reading of -2.3% in the previous month. Moreover, private-sector spending in Germany rose 0.7% from a revised reading of -2.2% in October on the back of lower energy costs. Meanwhile, fading demands from the global economy led German businesses to cut outputs for the third consecutive month as industrial production plunged 3.1% in December. The worst slump in over a decade lowered the annual rate of production to -6.4% from -3.7%, and conditions are likely to get worse as growth prospects for Europe’s largest economy deteriorates at a rapid pace. However, falling oil prices could help consumers to deal with the slowdown in the economy, and may lead the ECB to lower borrowing costs even further as price pressures alleviate. Discuss the topic and your trade ideas in the EUR/USD Forum.

GBPUSD – Output prices in the U.K. held flat in December amid forecasts for a 0.6% decline, while the annual rate of inflation slipped to 4.7% from 5.1% in the previous month. In addition, the core measure for outputs were unchanged at 5.0% despite expectations for a drop to 4.7%. The breakdown of the report showed that energy costs fell 4.3% during the month, while a 0.8% rise in food and tobacco offset the fall in oil prices. Meanwhile, input prices tumbled another 2.0% during the month on the back of lower energy costs, which was followed by a 3.0% drop in November. Nevertheless, industrial production fell 2.3% in November, followed by a 1.7% contraction in the previous month, which lower the annual reading to -6.9% from -5.2% in October - the weakest reading since March 1981.The data continues to reflect a dour outlook for the Europe’s second largest economy, and reinforces the Bank of England’s concern for deflation as price pressures continue to fall at a rapid pace. Discuss the topic and your trade ideas in the GBP/USD Forum.