EUROPEAN Trading Newsletter

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Germany FACTORY ORDERS S.A.

Friday Notes - Inflation – A major headache for the ECB by HVB Group

Another month of above−average big−ticket orders couldn't prevent a monthly decline of total industrial orders in December. Hence, another weak month should have followed as a further (technical) reaction at the beginning of 2008. This is, however, no reason for concern. Orders remain on a clear uptrend.

EMU economic indicators - The flash estimate for February is likely to show EMU inflation unchanged at 3.2 % yoy by BHF−Bank

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Switzerland UNEMPLOYMENT RATE

Swiss unemployment rate edges down in February (FXstreet.com)

Unemployment rate has edged down in February from January to a total of 2.7% from the 2.8% recorded in January, according to the Swiss SECO, Department of Economy.

• Read the Unemployment data at SECO [text in German]
• Swiss February unemployment drops to 2.7 pct from 2.8 pct in January (Thomson Financial News)

Japan LEADING ECONOMIC INDEX

Japan January Leading Indicators 30.0; Coincident 22.2 (Dow Jones)

Japan's index of leading economic indicators came in at 30.0 in January, falling short of the boom−or−bust threshold of 50.0 for the first time in two months, the Cabinet Office said Thursday. The result matched the average forecast of 30.0 by economists polled by Dow Jones/Nikkei. The index stood at a revised 50.0 in December and a revised 16.7 in November.

• Read the Leading Economic Index report at Japan Cabinet Office
• Japan's leading economic index falls to 30 in January from 50 in December (Thomson Financial News)
• Japan Jan Leading Indicators Table Of Data (Dow Jones)

Australia TRADE BALANCE

DATA SNAP: Australia Jan Trade Deficit A$2.72B (Dow Jones)

Australia's seasonally adjusted balance on trade in goods and services widened to a deficit of A$2.72 billion in January from a deficit of A$1.94 billion in December, the Australian Bureau of Statistics said Thursday. The figure is wider than analysts' expectations of a deficit of A$2.7 billion, and is just short of a record high A$2.8 billion recorded in October 2007.

• Read the Trade Balance report at Australian Bureau of Statistics
• Australia's January trade deficit widens to 2.7 bln aud from December − UPDATE (Thomson Financial News)
• Australia's trade deficit widens in January (Thomson Financial News)
• DATA SNAP: Australia Jan Trade Deficit Table −2− (Dow Jones)

US FED'S BEIGE BOOK

Fed's Beige Book reports economic slowdown in 8 of 12 districts (Thomson Financial News)

The economy has slowed down since the beginning of the year in two−thirds of the US Federal Reserve's regions and growth is subdued in the others, the Fed's Beige Book regional survey said today, although no region reported an actual contraction.

• Tony Juste, FX Advisor at FXstreet.com: "The Beige Book should refer once again to the deterioration of the economy in the US and the gloomy outlook ahead, leaving the door open to further cuts. It should be a negative even for the USD at this point." − FXstreet.com

Overnight Briefing: American Timezone - Stocks fluctuate after Ambac and FED data by Jyske Bank

US economic indicators - Both ISM indices could still indicate contraction in February by BHF−Bank