European Central Bank (ECB) Governing Council member Bostjan Jazbec said in an interview with the Wall Street Journal Friday that the central bank is ready to add further stimulus in March if needed. But he pointed out that further stimulus measures will depend on the incoming economic data.

The Australian Industry Group (AiG) released its construction data for Australia on late Thursday evening. The Ai Group/HIA Australian Performance of Construction Index fell to 46.3 in January from 46.8 in December. Analysts had expected the index to remain unchanged at 46.8.

A reading above 50 indicates expansion in the sector, a reading below 50 indicates contraction.

The decline was mainly driven by weak activity in the commercial construction sector.

Canada's seasonally adjusted Ivey purchasing managers' index jumped to 66.0 in January from 49.9 in December. Analysts had expected the index to rise to 50.0.

A reading above 50 indicates a rise in the pace of activity, below 50 indicates a contraction in the pace of activity.

The supplier deliveries index was down to 51.1 in January from 54.3 in December, while employment index fell to 55.1 from 59.7.

The prices index was increased to 71.6 in January from 61.9 in December, while inventories climbed to 61.5 from 50.8.

The U.S. Commerce Department released the trade data on Friday. The U.S. trade deficit widened to $43.36 billion in December from a deficit of $42.23 billion in November. November's figure was revised up from a deficit of $42.37 billion.

Analysts had expected a trade deficit of $43.0 billion.

The rise of a deficit was driven by a drop in exports. A stronger U.S. dollar and a weak demand abroad weighed on exports.

Exports fell by 0.3% in December, while imports increased by 0.3%.

In 2015 as whole, the trade deficit rose by 4.6% to $531.5 billion compared with the previous year. Exports dropped 4.8% in 2015, while imports declined 3.1%.

The U.S. Labor Department released the labour market data on Friday. The U.S. economy added 151,000 jobs in January, missing expectations for a rise of 190,000 jobs, after a gain of 262,000 jobs in December. December's figure was revised down from a rise of 292,000 jobs.

Job creation slowed in January. That could mean that the Fed might delay its further interest rate hikes. The Fed hiked its interest rates by a 0.25% to between 0.25% and 0.50% in December.

The increase was partly driven by a rise in the private sector. The private sector added 158,000 jobs in January.

The manufacturing sector added 29,000 jobs in January, construction added 18,000, while mining sector shed 7,000 jobs.

The U.S. unemployment rate fell to 4.9% in January from 5.0% in December. It was the lowest level since February 2008. Analysts had expected the unemployment rate to remain unchanged at 5.0%.

Average hourly earnings climbed 0.5% in January, exceeding forecasts of a 0.3% gain, after a flat reading in December.

The labour-force participation rate increased to 62.7% in January from 62.6% in December.

Statistics Canada released the trade data on Friday. Canada's trade deficit narrowed to C$0.59 billion in December from a deficit of C$1.59 billion in November. November's figure was revised up from a deficit of C$1.99 billion.

Analysts had expected a trade deficit of C$2.2 billion.

The decline in deficit was driven by a rise in exports. Exports climbed 3.9% in December.

Exports of aircraft and other transportation equipment and parts jumped by 26.4% in December, exports of consumer goods increased 6.4%, exports of metal ores and non-metallic minerals fell by 20.1%, while exports of metal and non-metallic mineral product were up 8.5%.

Imports rose 1.6% in December.

Imports of metal and non-metallic mineral products climbed by 5.4% in December, imports of electronic and electrical equipment and parts gained 2.3%, imports of consumer goods rose 2.0%, while imports of energy products increased 7.9%.

In 2015 as whole, the trade deficit was C$23.3 billion, down from a surplus of C$4.8 billion in 2014. Exports fell 0.9% in 2015, while imports rose 4.4%.

USDJPY: 115.00 (USD 776m) 115.50 (200m) 115.65-70 (380m) 117.00 (897m)117.20 (300m) 117.80-85 (790m) 118.00 (1.3bln)

EURUSD 1.0875 (EUR 1.8bln) 1.1000 (2.3bln) 1.1050 (462m) 1.1100 (852m) 1.1200 (2.3bln) 1.1300 (569m))

GBPUSD 1.4350 (GBP 331m) 1.4500 (668m) 1.4700 (513m)

NZDUSD 0.6500 (NZD 178m) 0.6550 (238m) 0.6700 (149m)

AUDUSD 0.7075 (AUD 200m) 0.7100-05 (441m) 0.7125 (349m) 0.7150 (209m) 0.7200 (493m)

USDCAD 1.3525 (USD 245m) 1.3700 (580m) 1.3795-1.3800 (840m) 1.3890-1.3900 (660m) 1.4085-1.4100 (1.5bln)

Statistics Canada released the labour market data on Friday. Canada's unemployment rate rose to 7.2% in January from 7.1% in December. Analysts had expected the unemployment rate to remain unchanged at 7.1%.

The labour participation rate remained unchanged at 65.9% in January.

The Bank of Canada monitors closely the labour participation rate.

The number of employed people fell by 5,700 jobs in January, missing expectations for a rise of 5,500 jobs, after a 1,300 increase in November. December's figure was revised down from a 22,800 gain.

The decrease was driven by a drop in part-time work. Full-time employment was up by 5,600 in January, while part-time employment slid by 11,300 jobs.

Employment fell in agriculture, manufacturing, transportation and warehousing, and public administration.

The Australian Bureau of Statistics released its retail sales data on Friday. Retail sales in Australia were flat in December, missing expectations for a 0.5% rise, after a 0.4% gain in November.

Household goods sales were up 0.4% in December, department stores sales increased 0.4%, and food sales rose 0.4%, while clothing, footwear and personal accessory sales climbed 0.4%.

On a yearly basis, retail sales climbed 4.2% in December, after a 4.3% rise in November.

Economic calendar (GMT0):

(Time/ Region/ Event/ Period/ Previous/ Forecast/ Actual)

00:30 Australia Retail Sales, M/M December 0.4% 0.5% 0.0%

00:30 Australia RBA Monetary Policy Statement

05:00 Japan Leading Economic Index (Preliminary) December 103.2 Revised From 103.5 102.8 102.0

05:00 Japan Coincident Index (Preliminary) December 111.9 111.2

07:00 Germany Factory Orders s.a. (MoM) December 1.5% -0.5% -0.7%

07:45 France Trade Balance, bln December -4.53 Revised From -4.63 -4.4 -3.94

The U.S. dollar traded mixed against the most major currencies ahead of the release of the U.S. economic data. Analysts expect that U.S. unemployment rate is expected to remain unchanged at 5.0% in January. The U.S. economy is expected to add 190,000 jobs in January, after adding 292,000 jobs in December.

The U.S. trade deficit is expected to widen to $43.0 billion in December from $42.37 billion in November.

The euro traded mixed against the U.S. dollar after the release of the mixed economic data from the Eurozone. Destatis released its factory orders data for Germany on Friday. German seasonal adjusted factory orders declined 0.7% in December, missing expectations for a 0.5% decrease, after a 1.5% rise in November.

The drop was driven by a decrease in domestic orders. Foreign orders increased by 0.6% in December, while domestic orders dropped by 2.5%.

New orders from the Eurozone declined 6.9% in December, while orders from other countries climbed 5.5%.

Orders of the intermediate goods decreased by 2.0% in December, capital goods orders were down 0.5%, while consumer goods orders climbed 4.3%.

According to the French Customs, France's trade deficit narrowed to €3.94 billion in December from €4.53 billion in November, exceeding expectations for a decline to a deficit of €4.4 billion. November's figure was revised up from a deficit of €4.63 billion.

Exports declined 0.9% in December, while imports dropped 2.2%.

On a yearly basis, exports rose 1.8% in December, while imports gained 2.9%.

In 2015 as whole, the trade deficit fell to €45.7 billion from €58.3 billion in 2014.

The British pound traded mixed against the U.S. dollar in the absence of any major economic reports from the U.K.

The Canadian dollar traded mixed against the U.S. dollar ahead of the Canadian economic data. The unemployment rate in Canada is expected to remain unchanged at 7.1% in January.

Canada's economy is expected to add 5,500 jobs in January.

The Canadian trade deficit is expected to widen to C$2.2 billion in December from C$1.99 billion in November.

EUR/USD: the currency pair traded mixed

GBP/USD: the currency pair traded mixed

USD/JPY: the currency pair traded mixed

The most important news that are expected (GMT0):

13:30 Canada Trade balance, billions December -1.99 -2.2

13:30 Canada Unemployment rate January 7.1% 7.1%

13:30 Canada Employment January 22.8 5.5

13:30 U.S. Average hourly earnings January 0% 0.3%

13:30 U.S. Average workweek January 34.5 34.5

13:30 U.S. International Trade, bln December -42.37 -43

13:30 U.S. Unemployment Rate January 5% 5%

13:30 U.S. Nonfarm Payrolls January 292 190

15:00 Canada Ivey Purchasing Managers Index January 49.9 50

EUR/USD

Offers 1.1200-05 1.1220 1.1235 1.125011275 1.1300 1.1330 1.1350

Bids 1.1180 1.1160 1.1130 1.1100 1.1080 1.1065 1.1050 1.1030 1.1000 1.0980 1.0950

GBP/USD

Offers 1.4550 1.4575-80 1.4600 1.4625 1.4645-50 1.4665 1.4685 1.4700

Bids 1.4500 1.4480 1.4450 1.4430 1.4400 1.4385 1.4365 1.4350

EUR/GBP

Offers 0.7725-30 0.7750 0.7765 0.7780 0.7800 0.7830 0.7850

Bids 0.7680 0.7660 0.7640 0.7625 0.7600 0.7585 0.7565 0.7550

EUR/JPY

Offers 131.00 131.30 131.50 131.80-85 132.00 132.25 132.50

Bids 130.60 130.30 130.00 129.80 129.50 129.30 129.00

USD/JPY

Offers 117.00 117.30 117.60 117.80 118.00 118.25 118.45-50 118.70 118.85 119.00 119.30 119.50 120.00

Bids 116.55-60 116.25 116.00 115.85 115.65 115.50 115.30 115.00

AUD/USD

Offers 0.7200 0.7220 0.7245-50 0.7270 0.7285 0.7300 0.7325-30 0.7350

Bids 0.7170 0.7165 0.7150 0.7130 0.7100 0.7080 0.7060 0.7030 0.7000

The Bank of France released its current account data on Friday. France's current account deficit was €0.7 billion in December, down from a deficit of €1.5 billion in November. November's figure was revised down from a deficit of €1.4 billion.

The trade goods deficit narrowed to €1.1 billion in December from €2.6 billion in November, while the surplus on services fell to €0.1 billion from €0.8 billion.

Japan's Cabinet Office released its preliminary leading index data on Friday. The leading index decreased to 102.0 in December from 103.2 in November. It was the lowest level since January 2013.

November's figure was revised down from 103.5.

Japan's coincident index was down to 111.2 in December from 111.9 in November. It was the lowest level since March 2015.

According to the French Customs, France's trade deficit narrowed to €3.94 billion in December from €4.53 billion in November, exceeding expectations for a decline to a deficit of €4.4 billion. November's figure was revised up from a deficit of €4.63 billion.

Exports declined 0.9% in December, while imports dropped 2.2%.

On a yearly basis, exports rose 1.8% in December, while imports gained 2.9%.

In 2015 as whole, the trade deficit fell to €45.7 billion from €58.3 billion in 2014.

Destatis released its factory orders data for Germany on Friday. German seasonal adjusted factory orders declined 0.7% in December, missing expectations for a 0.5% decrease, after a 1.5% rise in November.

The drop was driven by a decrease in domestic orders. Foreign orders increased by 0.6% in December, while domestic orders dropped by 2.5%.

New orders from the Eurozone declined 6.9% in December, while orders from other countries climbed 5.5%.

Orders of the intermediate goods decreased by 2.0% in December, capital goods orders were down 0.5%, while consumer goods orders climbed 4.3%.

Bank of England (BoE) deputy governor Ben Broadbent said on Friday that the U.K. economy recovered solidly, and there is no urgency to hike interest rates. He pointed out that low inflation in the U.K. lead to higher real wages and consumption, and a stronger economic growth.

U.S. President Obama on Thursday proposed a $10-a-barrel oil tax. This tax should be used for "clean transportation" projects.

The Reserve Bank of Australia (RBA) released its Statement on Monetary Policy on Friday. The central bank expects the Australian economy to expand faster. The economy is expected to grow 2.25% - 3.25% by the end of 2016 and 2017, and 3% - 4% in mid-2018.

The inflation in Australia is expected to be 2% by the end of 2016 and 2% - 3% by the end of 2017 and by mid-2018.

The RBA hinted that further monetary policy easing may be needed.

"Continued low inflation may provide scope for easier policy, should that be appropriate to lend support to demand," the central bank said.

The RBA noted that the slowdown in the Chinese economy could spill over to other economies in the region.

According to data from the Bloomberg Consumer Comfort Index, consumers' expectations for U.S. economy fell to 44.2 in in the week ended January 31 from 44.6 the prior week.

The decline was driven by a less favourable assessment of the economy and a fall in personal finances sub-index. The measure of views of the economy declined to 36.5 from 37.2, the buying climate index was up to 40.6 from 40.2, while the personal finances index slid to 55.5 from 56.3.

USD/JPY: 115.00 (USD 776m) 115.50 (200m) 115.65-70 (380m) 117.00 (897m)117.20 (300m) 117.80-85 (790m) 118.00 (1.3bln)

EUR/USD 1.0875 (EUR 1.8bln) 1.1000 (2.3bln) 1.1050 (462m) 1.1100 (852m) 1.1200 (2.3bln) 1.1300 (569m))

GBP/USD 1.4350 (GBP 331m) 1.4500 (668m) 1.4700 (513m)

NZD/USD 0.6500 (NZD 178m) 0.6550 (238m) 0.6700 (149m)

AUD/USD 0.7075 (AUD 200m) 0.7100-05 (441m) 0.7125 (349m) 0.7150 (209m) 0.7200 (493m)

USD/CAD 1.3525 (USD 245m) 1.3700 (580m) 1.3795-1.3800 (840m) 1.3890-1.3900 (660m) 1.4085-1.4100 (1.5bln)

Cleveland Fed President Loretta Mester said in a speech on Thursday that she expected the U.S. economy to continue to expand and the U.S. labour market to strengthen despite volatility in financial markets and further drop in oil prices.

"Solid labour market indicators, including strong payroll growth, and healthy growth in real disposable income, suggest that underlying U.S. economic fundamentals remain sound," she said.

Mester noted that the Fed should continue to hike its interest rate gradually.

"While the actual path the fed funds rate follows will depend on the economic outlook, and thus, will be data dependent, my current view is that economic conditions will evolve in a way that will warrant rates moving up gradually over time to more normal levels," Cleveland Fed president said.

EUR / USD

Resistance levels (open interest**, contracts)

$1.1288 (2027)

$1.1263 (2148)

$1.1227 (4079)

Price at time of writing this review: $1.1192

Support levels (open interest**, contracts):

$1.1127 (2118)

$1.1088 (1590)

$1.1045 (1754)

Comments:

- Overall open interest on the CALL options with the expiration date February, 5 is 46128 contracts, with the maximum number of contracts with strike price $1,1000 (6164);

- Overall open interest on the PUT options with the expiration date February, 5 is 80945 contracts, with the maximum number of contracts with strike price $1,0800 (10147);

- The ratio of PUT/CALL was 1.75 versus 1.63 from the previous trading day according to data from February, 4

GBP/USD

Resistance levels (open interest**, contracts)

$1.4800 (1270)

$1.4701 (2747)

$1.4604 (2366)

Price at time of writing this review: $1.4547

Support levels (open interest**, contracts):

$1.4499 (1071)

$1.4400 (1621)

$1.4300 (1064)

Comments:

- Overall open interest on the CALL options with the expiration date February, 5 is 27248 contracts, with the maximum number of contracts with strike price $1,4650 (2910);

- Overall open interest on the PUT options with the expiration date February, 5 is 25743 contracts, with the maximum number of contracts with strike price $1,4550 (2309);

- The ratio of PUT/CALL was 0.94 versus 0.93 from the previous trading day according to data from February, 4

* - The Chicago Mercantile Exchange bulletin (CME) is used for the calculation.

** - Open interest takes into account the total number of option contracts that are open at the moment.

Economic calendar (GMT0):

Time/ Region/ Event/ Period/ Previous/ Forecast/ Actual

00:30 Australia Retail Sales, M/M December 0.4% 0.5% 0.0%

00:30 Australia RBA Monetary Policy Statement

05:00 Japan Leading Economic Index (Preliminary) December 103.2 Revised From 103.5 102.8 102.0

05:00 Japan Coincident Index (Preliminary) December 111.9 111.2

07:00 Germany Factory Orders s.a. (MoM) December 1.5% -0.5% -0.7%

The U.S. dollar climbed against the euro after the recent decline. This week the dollar index, which measures the value of the greenback against a basket of ten major currencies, fell by 2.4% amid speculation that the Federal Reserve will delay its next rate hike.

Today market participants are waiting for U.S. employment data. The number of employed is expected to have grown by 190,000 in January compared to a rise of 292,000 in December. The U.S. Labor Department reported that the number of initial jobless claims rose by 8,000 to 285,000 in the week ending January 30. The reading exceeded expectations for growth to 280,000. The number of claims has remained below 300,000 for 48 weeks in a row (the longest series since 1970s).

The Australian dollar fell after the Reserve Bank of Australia cut its short-term inflation forecast and 2017 GDP forecast. The GDP is expected to expand by 3% in 2017 compared to an earlier forecast of a 3.5% gain. Inflation is likely to bу 1.5% in 2016 compared to 2.0% expected earlier. The central bank's inflation target range is 2%-3%.

Retail sales volume was unchanged in Australia in December, while economists had expected growth of 0.5%. Sales expanded by 0.4% in the previous month.

EUR/USD: the pair fluctuated within $1.1185-15 in Asian trade

USD/JPY: the pair traded within Y116.55-00

GBP/USD: the pair fell to $1.4545

The most important news that are expected (GMT0):

(time / country / index / period / previous value / forecast)

07:45 France Trade Balance, bln December -4.63 -4.4

13:30 Canada Trade balance, billions December -1.99 -2.2

13:30 Canada Unemployment rate January 7.1% 7.1%

13:30 Canada Employment January 22.8 5.5

13:30 U.S. Average hourly earnings January 0% 0.3%

13:30 U.S. Average workweek January 34.5 34.5

13:30 U.S. International Trade, bln December -42.37 -43

13:30 U.S. Unemployment Rate January 5% 5%

13:30 U.S. Nonfarm Payrolls January 292 190

15:00 Canada Ivey Purchasing Managers Index January 49.9 50

20:00 U.S. Consumer Credit December 13.95 16

(pare/closed(GMT +2)/change, %)

EUR/USD $1,1206 +0,92%

GBP/USD $1,4589 -0,08%

USD/CHF Chf0,9932 -1,06%

USD/JPY Y116,77 -0,95%

EUR/JPY Y130,87 -0,02%

GBP/JPY Y170,35 -1,06%

AUD/USD $0,7199 +0,44%

NZD/USD $0,6722 +0,86%

USD/CAD C$1,3752 -0,20%