German, French and Italian Industrial Production show Europe is recovering from recession!

•  Another quiet trading session yesterday in the States with no major economic reports released and no official statements on monetary policy communicated. The main report yesterday was the weekly Crude Oil inventories which came in below expectations at 1.4M barrels. Although the report did cause a bout of volatility in the price of Oil by the end of the session Crude closed almost unchanged at $81.50. 2 year Treasuries traded above 0.90 and the USDJPY tracked this gain and traded back up to 90.81. Focus turns to Initial jobless claims today expected at 460K.
•  In Europe yesterday we saw both French and Italian Industrial production reports significantly beat expectations by coming in at 1.6% and 2.6% respectively. Taking in to consideration Germany's positive Industrial production numbers the day before we can assume the Euro zone is undergoing a meaningful economic recovery. In regards to the Greek issue Prime Minister Papandreou said that the EU has figured out a way to reduce Greek borrowing costs and also said the European Union may intervene if borrowing costs do not fall. EURUSD price action yesterday was between 1.3540 - 1.3680.
•  In New Zealand yesterday we had the RBNZ rate decision followed by a Rate statement. The rate stayed unchanged at 2.50% however the market was anticipating a rather hawkish statement which failed to materialize. The NZDUSD subsequently traded lower to 0.6972 from a 0.7095 high just before the announcement.
•  In China overnight we saw the CPI figures released and showed inflation hit a 16 month high. Industrial production and new loans also beat estimates further adding pressure to China to tighten its current monetary policy.
•  Today the market turns its focus to International trade for January expected to come in at -41 bln and jobless claims for the week expected to come in at 460K. Jobless claims will be an important indicator for the next NFP report given the expectation of job creation in the March payrolls report. 

 Currency to watch out for: EURUSD & USDJPY

• § The EURUSD pivot point is at 1.3680 with a preference to enter into short positions at 1.3670
• § The USDJPY pivot point is at 90.75 with a preference to enter short positions at 90.70

 Today's calendar and market movers:

• § United States International trade for January expected at $-41 billion
• § United States Initial Jobless claims for the week expected at 460K

 Equity Markets:

•  US equities closed positive yesterday with the DJIA and the SP500 closing 0.03% and 0.45% respectively.  The European bourses were positive yesterday with the FTSE up 0.68% the DAX and the CAC closing positive at 0.86% and 0.86% respectively.  The NIKKEI and the HSI at the time of writing is 0.96% and 0.16% respectively.