FXstreet.com (Barcelona) - Thursday's preliminary European GDP data, according to BNZ FX Strategists Mike Jones, "will be an important test on whether the single-currency can retain a foothold above 1.2700." Projections are for a 0.1% contraction.

"We’d look to fade any EUR/USD rallies on a more positive number given the activity indicators for the fourth quarter (including last night’s industrial production numbers) don’t suggest a recovery is in the offing. Indeed, momentum in the all-important French and German economies looked to have lost noticeable steam in Q4" Mr. Jones notes.