Last week positive labor market data was published with an unexpected drop in New Zealand’s unemployment rate in the fourth quarter decreasing to 6.3% from 6.6%, better than the 6.5% predicted. Furthermore, Labor Cost Index improved by 0.7% in the last quarter from 0.5% gain in the third quarter. Will New Zealand continue ots recovery?

Last week ECB president Mario Draghi’s remark at the ECS press conference provided a loop hole to contribute to the Greek bailout, by suggesting to distribute profits from Greek bonds to Greece. Meantime Greece is in a vicious cycle while the austerity measures posed by the EU paralyze market activity lowering consumption which in turn produces less tax revenues to cover its growing debt. Will Draghi’s suggestion help the struggling nation? Let’s start:

In the US, Richmond Manufacturing Index, Manufacturer’s Monthly Survey to rate business conditions such as shipments, new orders etc., rise that shows condition improvements by 3 points up to 6 points this month.

Here are all the details, and 5 possible outcomes for USD/CAD.

Strong figures were released last week with a surge in foreign securities purchases reaching C$14.99 billion while way above the C$6.97billion predicted and Manufacturing sales increased better than predicted by 2.0%. The BOC  released its monetary policy report announcing the bank predicts the Canadian economic recovery will continue “at a more modest pace” in light of the deepening crisis in the EU which will definitely affect the Canadian recovery unless contained by EU officials. Will the Canadian economy continue to expand?

In the US, Unemployment Claims, important indicator to value the unemployed that are looking for jobs over the last month, rise of 1K is predicted up to 373K.

Last week weekly jobless claims dropped to 372K continuing the recovery process in the labor market after 387K claims in the prior week. ADP Non-Farm Payrolls also surprised with a gain of 325K jobs in the private sector, much better than the 176K predicted. These wonderful readings led to the grand finale event, the Non-Farm Payrolls, surging higher than expected with an addition of 200,000 and another drop in the unemployment rate. These positive figures raise expectations for a stronger job market in 2012.

In the US, Existing Home Sales, monthly report to value the inhabited houses that were sold on the last month (the previous month (not including new building), rise from 4.97M on November up to 5.04M is predicted now.

Last week BOC Governor Mark Carney made a speech in Toronto asking businesses to boost investments and enter emerging markets. He also recommended on Canada’s relatively healthy economic situation compared to the debt-fuelled foreign markets. Canadian consumers should restrain their debts while businesses should invest in enhancing productivity in the market. Will Canadian growth process continue?

Early expectations stood on a gain of 0.6% in the headline figure and a rise of 0.5% in the core figure. EUR/USD is dropping in range following the release – classic risk aversion behavior.