Currency action is mixed on the day, with little economic data to spark any meaningful moves before the start of the weekend.  As a result, although the euro is slightly lower against the US dollar – on speculation over current Greek talks – there is some support for the Australian dollar, which is higher by 0.51% on the day against the greenback.  A bulk of the day’s attention looks to be equity centered as traders remain concerned over a decline in Google’s earnings.

1.  Negotiations continue in Athens between creditor institutions and the Greek government – with reports dissipating through the market of an imminent deal between the two parties.  Concerns, however, remain on the willingness of certain parties to accept a coupon less than 4% – given the 50% haircut on Greek debt investments.

2.  US existing homes sales jumped by 5% to an annualized rate of 4.61 million in December for the third straight monthly gain, according to the National Association of Realtors this morning.  Although promising the figure is still at the low end of the scale – falling below market estimates of a 4.65 million pace for the year.

3.  Canadian consumer price inflation rose less than anticipated in December, increasing by 2.3% annually compared to estimates for a 2.7% gain.  The lower than anticipated figure lends to speculation that any rate hikes by the Bank of Canada will be pushed to the second half of this year.

4.  Aggressive price cuts and store hungry for market share led retail sales higher in the UK.  For the month of December, sales rose by a healthy 0.6% – compared to the 0.5% drop witnessed in November.  The report published by the Office for National Statistics showed a 2.6% gain on the year on year comparison.

5.  A purchasing managers survey showed the potential for China’s manufacturing sector to decline for the third month.  According to the HSBC/Markit PMI survey, China’s manufacturing sector activity fell to a reading of 48.8 in January.  The drop isn’t that off from December’s 48.7 reading but increases speculation of additional stimulus measures on behalf of the country’s central bank.