There were no data releases from Eurozone on Thursday. Traders who had reversed short bets after the European Central Bank's smaller-than-expected stimulus move early this month may have begun shorting the currency again, given the likelihood that higher rates in the United States will continue to boost the dollar. “It may well be that some investors have started putting back some (euro) short bets on," said Greg Anderson, global head of FX strategy at BMO Capital Markets in New York. "People are expecting yields to be appealing in the United States, and that drives demand for dollar cash."
In the US session
Unemployment Claims and Chicago
PMI figures were released.In the week ending December 26, the advance figure for seasonally adjusted
initial claims was 287,000, an increase of 20,000 from the previous week's unrevised level of 267,000. Analysts were anticipating increase to 274,000. The 4-week moving average was 277,000, an increase of 4,500 from the previous week's unrevised average of 272,500.
The Chicago Business Barometer contracted at the fastest pace since July 2009, falling 5.8 points to 42.9 in December from 48.7 in November. Analysts were predicting increase to 50.5. It has been a volatile year for the Barometer.New Orders and Production have experienced particularly large swings with businesses never recovering fully from a sharp plunge at the beginning of the year. The Barometer’s December print is 16.5 points beneath the January high of 59.4. The quarterly average declined to 49.3 in Q4, the same as in Q2 which was the weakest quarter since Q3 2009.
European part of Monday's session will bring German Prelim CPI and Spanish and Italian Manufacturing PMI data. In the US session ISM Manufacturing PMI figures are scheduled for a release.
Figures to watch:
German Prelim CPI (Monday)
Spanish Manufacturing PMI (Monday 9:15)
Italian Manufacturing PMI (Monday 9:45)
ISM Manufacturing PMI (Monday 16:00)
