Looking for action on US jobs

Market Outlook :

This week we expect the US labor report for February to show a pick up in employment growth. ISM business surveys should have given back some ground but remain near cyclical highs.

In Europe, the ECB and Bank of England will probably leave interest rates unchanged. German retail sales and French consumer confidence probably improved in January and February respectively.

The Japanese leading index likely improved in January.This week we expect the US labor report for February to show a pick up in employment growth.

ISM business surveys should have given back some ground but remain near cyclical highs. In Europe, the ECB and Bank of England will probably leave interest rates unchanged.

German retail sales and French consumer confidence probably improved in January and February respectively. The Japanese leading index likely improved in January.

Focus on Equities :

Markets are searching for a new catalyst, but it remains unclear what this driver will be. This week, economics will move the equity markets as only a few big caps, like HSBC, Biogen and Costco will report earnings. Also according to the technical picture, consolidation is the name of the game.

Foreign Exchanges :

The euro/dollar tested the crucial support zone at 1.2370/35.

We expect consolidation around current levels, but a breach below the defined supportzone gives room for a further decline to 1.2110. The dollar/yen broke out of a large falling wedge pattern.

This is a bullish signal that suggests further gains back to the origin of this pattern, i.e. back to 111.49. First support lies at 107.35 and we would like to see the 106.90 hold in order to keep the immediate upward view valid.