Today’s Market Outlook
EURUSD remains in a corrective mode from 1.3312, 06 Jan low, with 1.3800 high seen yesterday. Clearance of 1.3840 break point is required to resume correction, otherwise, lower top under the latter would signal fresh weakness towards 1.3535, yesterday’s low, possibly 1.3312 on a break.

Swiss CPI declines sharply in December
FXstreet.com (Barcelona) Consumer prices have eased in December in Switzerland to the lowest year on year growing rates seen in the whole 2008, according to figures released by the Swiss Federal Statistics Office.

Prices at consumer level have declined 0.5% in Switzerland in December, while year on year the increase has been the 0.7%. To see such a mild year on year increment on inflation we have to go back to October 2007. In November 2008, prices increased at a 1.5% year on year pace.

Despite the low inflation, the Swiss National Bank does not have a big margin for monetary policy, since interest rates have been trimmed down to 0.5%, however, on the light of such low inflation, some analysts observe the possibility to a further rate cut to 0.25% the lowest rate since March 2003.

FXstreet.com

Canadian Housing Starts Holding Relatively Steady
Canadian housing starts came in at an annualized 177,300 units in December, a very modest 0.4% fall from November’s upwardly revised 178,000 units (previous estimate 172,000). December’s result reflected a 5.1% drop in urban singles to 62,700 offsetting a 3.2% rise in urban multiples to 87,400. The gain in the…

Euro Zone GDP decreases in the third quarter for second consecutive time
FXstreet.com (Barcelona) As previously estimated Euro Zone s economy has officially entered into recession in the thir5d quarter of the year, as the Gross Domestic Product shrunk for second consecutive quarter weighed by weak foreign trade figures and slumping industrial production.

Gross Domestic Product has declined 0.2% between July and September 2008, at the same contracting pace seen in the previous quarter. The year on year growing rate has dropped to 0.6% in the third quarter from the 1.4% pace seen in the second quarter.

FXstreet.com