The Swissie only needs to appreciate another 0.5% vs. the euro to reach the 1.20 level, so the market is becoming increasingly nervous of further intervention by the central bank. The remarkable thing is that this has come at a time when the euro has been subject to some fairly severe short-squeezes, a function of the stretched short positions which lie beneath (see comments below). Video:

In the US, Unemployment Claims, monthly indicator to value the unemployment insurance that was filed on the last week, is predicted to drop down from 377K to 373K this week.

Early expectations stood on a gain of 189K.

In the US, The Institute for Supply Management (ISM) Manufacturing Purchasing Managers’ Index (PMI); Monthly Managers Survey to value the business conditions such as new orders, deliveries and inventories, rise is expected from 53.9 points on December up to 54.6 points now. And on the ISM Manufacturing Prices similar rise is forecasted from 47.5 points to 49.5 points.

Ben Bernanke weakened the dollar with an extended pledge for low rates: until late 2014. and a hint about the possibility of a third round of QE. While the US economy grew at a higher pace than in previous quarters, the pace is still moderate and seems insufficient for convincing the Federal Reserve to stop easing. PMIs and job figures are also an important part of the composition of the decision, and we’ll get fresh data now. Let’s start:

This triggers a rise in USD/JPY. EUR/USD cannot cheer up by this risk-appetite figure and remains depressed. Update: EUR/USD ticks down.

In the US, Unemployment Claims, weekly report that is important for monetary health, value new unemployment insurances over the last week, decrement is due from 381K down to 375K now.

Last week the EUR/USD plunged to its lowest level since September 2010, following Italy’s failure of raise sufficient funds from its recent bond auction. Italy is likely to become the first EU country to enter recession, increasing concerns in the European continent. Unlike the grim situation in the EU, the US market is doing rather well with satisfactory employment data, elevated consumer sentiment and improved housing figures. Is there hope for a general recovery in 2012?

In the US, Automatic Data Processing, Inc. (ADP) Non-Farm Employment Change, measures the number of employed people over the last month (without government & farming industry), rise is expected from 110K on October up to 131K.

Apart from the debt crisis, figures around the globe have been mixed. The drop in Chinese manufacturing PMI was worrying, but German Business Climate provided a rather rare positive surprise with an addition of 0.2 points reaching 106.6 and in the US, Core Durable Goods Orders increased by 0.7%, well above expectations, also Unemployment claims remained below the 400,000 line reaching 393,000, broadly within expectations.